High Probability ETF Trading: 7 ETFs You Need to Know for Tuesday (EWM, EWQ, EWP, RTH, ERY, FAZ, IWM)

Asian country funds continue to be among the most oversold exchange-traded funds in our database. As we have reported here in 7 ETFs You Need to Know for the past several days, ETFs from countries like Taiwan and Singapore (the ^EWT^ and the ^EWS^, respectively) have closed lower for multiple days in a row, many of those session ending in oversold territory.

Continued strength in the broader market has helped put a number of inverse leveraged ETFs in our near exceptionally oversold levels going into trading on Tuesday. These include inverse leveraged funds from sectors like energy and finance.

Here are 7 ETFs You Need to Know for Tuesday.

In addition to Taiwan and Singapore, the^EWM^ have closed lower for five trading days in a row and are oversold above the 200-day moving average.

Outside of Asia, both the ^EWQ^and the ^EWP^ (below) are oversold above the 200-day heading into trading on Tuesday.

EWP chart

Although shares of the EWP have closed higher on an open-to-close basis over the past three days, the fund has still closed lower on a close-to-close basis for three days in a row.

Trading just outside of oversold territory above the 200-day is the ^RTH^ (below).

RTH chart

RTH reversed lower on Monday after a strong move higher into short term overbought territory on Friday. The pullback in RTH took the stock back below its 5-day moving average on a closing basis for the first time since the beginning of the month.

Pulling back to new lows ahead of Tuesday’s open is the ^ERY^ (below).

ERY chart

Shares of ERY have closed lower for three days in a row, and are likely only one significant selling day away from closing in oversold territory.

Also on the verge of oversold territory in the face of continued strength in the sector is the ^FAZ^. FAZ is down for the past three days in a row, five out of the past six.

Up three days in a row and overbought above the 200-day moving average ahead of trading on Tuesday was the ^IWM^. IWM has traded above its 5-day moving average for the entire month of February and has closed in overbough territory for eight out of the past ten trading days.

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David Penn is Editor in Chief of TradingMarkets.com