FTSL Crowded With Sellers

In trading on Thursday, shares of the First Trust Senior Loan Fund ETF (Symbol: FTSL) entered into oversold territory, changing hands as low as $45.26 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 Senior Loan Fund, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 40.4. A bullish investor could look at FTSL's 29.4 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), FTSL's low point in its 52 week range is $44.30 per share, with $46.30 as the 52 week high point — that compares with a last trade of $45.25. First Trust Senior Loan Fund shares are currently trading down about 0.2% on the day.

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