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India Consumer (INCO) Enters Oversold Territory

Tickers in this article: INCO
In trading on Thursday, shares of the India Consumer ETF entered into oversold territory, changing hands as low as $21.81 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 India Consumer, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 47.0.

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A bullish investor could look at INCO's 29.1 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), INCO's low point in its 52 week range is $16.53 per share, with $25.22 as the 52 week high point — that compares with a last trade of $21.81. India Consumer shares are currently trading off about 1.4% on the day.

India Consumer 1 Year Performance Chart