In trading on Wednesday, shares of the S&P International Developed High Quality Portfolio ETF (AMEX:IDHQ) entered into oversold territory, changing hands as low as $14.628 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 S&P International Developed High Quality Portfolio, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 35.9.
A bullish investor could look at IDHQ's 27.5 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), IDHQ's low point in its 52 week range is $13.53 per share, with $19.47 as the 52 week high point — that compares with a last trade of $14.73. S&P International Developed High Quality Portfolio shares are currently trading off about 2.2% on the day.
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