In trading on Tuesday, shares of the FPE ETF (Symbol: FPE) entered into oversold territory, changing hands as low as $17.3421 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 FPE, the RSI reading has hit 27.8 — by comparison, the RSI reading for the S&P 500 is currently 37.1. A bullish investor could look at FPE's 27.8 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), FPE's low point in its 52 week range is $17.18 per share, with $20.76 as the 52 week high point — that compares with a last trade of $17.35. FPE shares are currently trading off about 0.5% 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.