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FEU Crowded With Sellers

Tickers in this article: FEU
In trading on Friday, shares of the SPDR STOXXEurope 50 ETF entered into oversold territory, changing hands as low as $32.92 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 SPDR STOXXEurope 50, the RSI reading has hit 27.1 — by comparison, the RSI reading for the S&P 500 is currently 38.4.

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A bullish investor could look at FEU's 27.1 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), FEU's low point in its 52 week range is $27.76 per share, with $36.51 as the 52 week high point — that compares with a last trade of $32.92. SPDR STOXXEurope 50 shares are currently trading down about 0.1% on the day.

SPDR STOXXEurope 50 1 Year Performance Chart