In trading on Tuesday, shares of the TrueShares Structured Outcome February ETF (Symbol: FEBZ) entered into oversold territory, changing hands as low as $39.03 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 TrueShares Structured Outcome February, the RSI reading has hit 26.3 — by comparison, the RSI reading for the S&P 500 is currently 50.6.
A bullish investor could look at FEBZ’s 26.3 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), FEBZ’s low point in its 52 week range is $35.5845 per share, with $41.58 as the 52 week high point — that compares with a last trade of $39.03. TrueShares Structured Outcome February shares are currently trading off about 4.6% on the day.
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