In trading on Tuesday, shares of the PFFD ETF (Symbol: PFFD) entered into oversold territory, changing hands as low as $20.77 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 PFFD, the RSI reading has hit 29.98 — by comparison, the RSI reading for the S&P 500 is currently 37.3. A bullish investor could look at PFFD's 29.98 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), PFFD's low point in its 52 week range is $20.42 per share, with $26.16 as the 52 week high point — that compares with a last trade of $20.77. PFFD shares are currently trading off about 1% 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.
