IShares MSCI Emerging Markets Financials (EMFN) Enters Oversold Territory

Tickers in this article: EMFN
In trading on Friday, shares of the iShares MSCI Emerging Markets Financials ETF entered into oversold territory, changing hands as low as $22.0101 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 iShares MSCI Emerging Markets Financials, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 49.9.

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A bullish investor could look at EMFN's 29.5 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), EMFN's low point in its 52 week range is $21.36 per share, with $29.84 as the 52 week high point — that compares with a last trade of $22.01. iShares MSCI Emerging Markets Financials shares are currently trading off about 2.9% on the day.

iShares MSCI Emerging Markets Financials 1 Year Performance Chart