First Trust Dow Jones Internet Index Fund Getting Very Oversold

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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

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