In trading on Thursday, shares of the First Trust Global Tactical Commodity Strategy Fund ETF (Symbol: FTGC) entered into oversold territory, changing hands as low as $27.33 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 Global Tactical Commodity Strategy Fund, the RSI reading has hit 27.8 — by comparison, the RSI reading for the S&P 500 is currently 39.8. A bullish investor could look at FTGC'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), FTGC's low point in its 52 week range is $22.65 per share, with $31.47 as the 52 week high point — that compares with a last trade of $27.37. First Trust Global Tactical Commodity Strategy Fund shares are currently trading down about 2.4% 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.
