HEFT Crowded With Sellers

In trading on Friday, shares of the Hedgeye Fourth Turning ETF (Symbol: HEFT) entered into oversold territory, changing hands as low as $25.43 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 Hedgeye Fourth Turning, the RSI reading has hit 25.5 — by comparison, the RSI reading for the S&P 500 is currently 72.1. A bullish investor could look at HEFT's 25.5 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), HEFT's low point in its 52 week range is $24.92 per share, with $28.28 as the 52 week high point — that compares with a last trade of $25.59. Hedgeye Fourth Turning shares are currently trading down about 1.4% on the day.

Find out what 9 other oversold stocks you need to know about »

Also see: