During Thursday’s trading, shares of ETF EWT (Symbol: EWT) entered oversold territory, changing hands as low as $46.255 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered oversold if the RSI reading falls below 30.
In the case of the EWT, the RSI reading reached 29.6 – in comparison, the RSI reading for the S&P 500 is currently 32.8. A bullish investor might take the 29.6 EWT reading as a sign that the recent selloff is running out of steam and starting to look for entry point opportunities on the buy side.
Looking at a one-year performance chart (below), EWT’s low point in its 52-week range is $46.22 per share, with $68.40 as its 52-week high – compare with a final trade of $46.25. Shares of EWT are currently trading down around 0.7% on the day.
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