First Trust Dow Jones Internet Index Fund Getting Very Oversold

By
A A A

In trading on Friday, shares of the First Trust Dow Jones Internet Index Fund ETF (Symbol: FDN) entered into oversold territory, changing hands as low as $56.34 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 First Trust Dow Jones Internet Index Fund, the RSI reading has hit 28.8 - by comparison, the RSI reading for the S&P 500 is currently 55.8. A bullish investor could look at FDN's 28.8 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), FDN's low point in its 52 week range is $40.75 per share, with $65.79 as the 52 week high point - that compares with a last trade of $56.85. First Trust Dow Jones Internet Index Fund shares are currently trading down about 3.1% on the day.


First Trust Dow Jones Internet Index Fund 1 Year Performance Chart

Find out what 9 other oversold stocks you need to know about »



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: FDN

BNK Invest

BNK Invest

More from BNK Invest:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com