In trading on Monday, shares of the FNDE ETF (Symbol: FNDE) entered into oversold territory, changing hands as low as $26.5953 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 FNDE, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 44.9. A bullish investor could look at FNDE'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), FNDE's low point in its 52 week range is $25.1528 per share, with $29.3628 as the 52 week high point — that compares with a last trade of $26.68. FNDE shares are currently trading off about 1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.