In trading on Wednesday, shares of the FTSE RAFI Developed Markets ex-U.S. Portfolio ETF (AMEX:PXF) entered into oversold territory, changing hands as low as $30.29 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 FTSE RAFI Developed Markets ex-U.S. Portfolio, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 33.3.
A bullish investor could look at PXF's 29.8 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), PXF's low point in its 52 week range is $29.87 per share, with $42.31 as the 52 week high point — that compares with a last trade of $30.29. FTSE RAFI Developed Markets ex-U.S. Portfolio shares are currently trading off about 2.6% on the day.
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