Shares of FTLS Now Oversold

In trading on Tuesday, shares of the First Trust Long/Short Equity ETF (Symbol: FTLS) entered into oversold territory, changing hands as low as $63.79 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 Long/Short Equity, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 26.9. A bullish investor could look at FTLS's 29.5 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), FTLS's low point in its 52 week range is $58.92 per share, with $69.94 as the 52 week high point — that compares with a last trade of $63.74. First Trust Long/Short Equity shares are currently trading down about 0.3% on the day.

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