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SPDR Bloomberg Emerging Markets Local Bond Getting Very Oversold

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In trading on Monday, shares of the SPDR Bloomberg Emerging Markets Local Bond ETF (NYSE:EBND) entered into oversold territory, changing hands as low as $19.615 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 SPDR Bloomberg Emerging Markets Local Bond, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 37.2.

A bullish investor could look at EBND's 27.2 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), EBND's low point in its 52 week range is $18.45 per share, with $21.83 as the 52 week high point — that compares with a last trade of $19.63. SPDR Bloomberg Emerging Markets Local Bond shares are currently trading down about 1% on the day.