In trading on Monday, shares of the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD) entered into oversold territory, changing hands as low as $38.0099 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 Value Line Dividend Index Fund, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 31.4. A bullish investor could look at FVD'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), FVD's low point in its 52 week range is $34.97 per share, with $41.93 as the 52 week high point — that compares with a last trade of $38.05. First Trust Value Line Dividend Index Fund shares are currently trading off about 0.4% on the day.
Also see: High-Yield REITs
Funds Holding GOF
EUSB YTD Return
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