In trading on Friday, shares of the GMO Beyond China ETF (Symbol: BCHI) entered into oversold territory, changing hands as low as $30.17 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 GMO Beyond China, the RSI reading has hit 23.6 — by comparison, the RSI reading for the S&P 500 is currently 51.1.
A bullish investor could look at BCHI’s 23.6 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), BCHI’s low point in its 52 week range is $27.688 per share, with $41.9426 as the 52 week high point — that compares with a last trade of $30.16. GMO Beyond China shares are currently trading down about 16.7% on the day.
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Further BCHI Research:
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