FPE Crowded With Sellers

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In trading on Thursday, shares of the First Trust Preferred Securities and Income ETF (Symbol: FPE) entered into oversold territory, changing hands as low as $18.95 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 Preferred Securities and Income, the RSI reading has hit 29.7 - by comparison, the RSI reading for the S&P 500 is currently 53.6. A bullish investor could look at FPE's 29.7 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), FPE's low point in its 52 week range is $18.95 per share, with $20.20 as the 52 week high point - that compares with a last trade of $18.97. First Trust Preferred Securities and Income shares are currently trading down about 0.4% on the day.

First Trust Preferred Securities and Income 1 Year Performance Chart

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

This article appears in: Investing , ETFs
Referenced Symbols: FPE

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