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Brazil Mid Cap Getting Very Oversold

Tickers in this article: BRAZ
In trading on Tuesday, shares of the Brazil Mid Cap ETF entered into oversold territory, changing hands as low as $12.6101 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 to be oversold if the RSI reading falls below 30.

In the case of Brazil Mid Cap, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 46.9.

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A bullish investor could look at BRAZ's 27.7 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), BRAZ's low point in its 52 week range is $12.11 per share, with $16.78 as the 52 week high point — that compares with a last trade of $12.61. Brazil Mid Cap shares are currently trading off about 3.4% on the day.

Brazil Mid Cap 1 Year Performance Chart