In trading on Friday, shares of the FTEC ETF (Symbol: FTEC) entered into oversold territory, changing hands as low as $46.9668 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 FTEC, the RSI reading has hit 28.5 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at FTEC's 28.5 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), FTEC's low point in its 52 week range is $46.77 per share, with $60.8951 as the 52 week high point - that compares with a last trade of $46.98. FTEC shares are currently trading off about 3.2% 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.