uploads///MA EUFN

EUFN Is Trending Downwards on Global Growth Worries


Nov. 20 2020, Updated 2:32 p.m. ET

Overview of EUFN

In this article, we’ll analyze the iShares MSCI Europe Financial Sector ETF (EUFN) using technical indicators such as moving averages and the relative strength index. European ETFs have suffered due to the commodity prices slump and the global growth slowdown.

The iShares MSCI Europe Financial Sector ETF (EUFN) seeks to track the performance of an index composed of developed market European (FEZ) equities in the financials sector. It has a market capitalization of $211 million as of February 19. On average, shares worth $3.9 million trade hands every day. Its largest holdings are HSBC (HSBC), Banco Santandar (SAN), Allianz (ALV), UBS Group (UBS), and Lloyds Banking Group (LLOY). These companies make up 8.2%, 4.4%, 4.1%, 3.9%, and 3.6%, respectively, of EUFN. The fund invests 33% of its holdings in UK stocks. Countries like France, Switzerland, Germany, and Spain are also heavily weighted in the EUFN portfolio.

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Moving average analysis

On February 19, EUFN closed at $16.89, 18%, 10.7%, and 1.7% below its 100-day, 50-day, and 20-day moving averages, respectively. EUFN crossed above its 20-day moving average on February 17, but could not hold on. These crossovers are viewed as bearish signals.

Relative strength index

The 14-day relative strength index (or RSI) for the EUFN ETF is 42.6 as of February 19. This suggests the ETF is still close to oversold levels. An RSI figure below 30 is an indication of an oversold stock while an RSI above 70 denotes an overbought stock.


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