PGF Crowded With Sellers
In trading on Monday, shares of the PGF ETF (Symbol: PGF) entered into oversold territory, changing hands as low as $15.18 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 PGF, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 39.4. A bullish investor could look at PGF's 29.8 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), PGF's low point in its 52 week range is $14.90 per share, with $19.18 as the 52 week high point — that compares with a last trade of $15.22. PGF shares are currently trading down about 1.1% on the day.
