In trading on Friday, shares of the PLUS Korea Defense Industry Index ETF (Symbol: KDEF) entered into oversold territory, changing hands as low as $38.71 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 PLUS Korea Defense Industry Index, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 45.1.
A bullish investor could look at KDEF’s 28.9 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), KDEF’s low point in its 52 week range is $37.80 per share, with $67.41 as the 52 week high point — that compares with a last trade of $38.97. PLUS Korea Defense Industry Index shares are currently trading off about 3.3% on the day.
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Further KDEF Research:
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