Investors Track Opportunity in Oversold Conditions
On Wednesday, shares of the iShares Latin America 40 ETF (Symbol: ILF) fell into oversold territory, trading as low as $23.56 per share. The oversold condition is determined using the Relative Strength Index (RSI), a tool that gauges momentum on a scale from zero to 100. A stock is classified as oversold when its RSI drops below 30.
For iShares Latin America 40, the RSI has reached 28.7. In contrast, the S&P 500 currently holds an RSI of 60.2. This lower RSI reading might attract bullish investors, who could see it as an indication that the recent selling pressure is starting to diminish, prompting them to search for buying opportunities.
Examining the one-year performance of ILF (as displayed in the chart below), we see its 52-week low at $22.51 per share, with a high at $29.835. The latest trading price stands at $23.53, marking a decrease of about 1.8% for the day.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
