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IShares MSCI Emerging Markets Energy Capped (EMEY) Enters Oversold Territory

Tickers in this article: EMEY
In trading on Friday, shares of the iShares MSCI Emerging Markets Energy Capped ETF entered into oversold territory, changing hands as low as $34.10 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 Energy Capped, the RSI reading has hit 28.3 — by comparison, the RSI reading for the S&P 500 is currently 49.9.

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A bullish investor could look at EMEY's 28.3 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), EMEY's low point in its 52 week range is $33.78 per share, with $49.92 as the 52 week high point — that compares with a last trade of $34.33. iShares MSCI Emerging Markets Energy Capped shares are currently trading off about 1.8% on the day.

iShares MSCI Emerging Markets Energy Capped 1 Year Performance Chart