In trading on Tuesday, shares of the FT Vest Bitcoin Strategy & Target Income ETF (Symbol: DFII) entered into oversold territory, changing hands as low as $10.99 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 FT Vest Bitcoin Strategy & Target Income, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 55.0.
A bullish investor could look at DFII’s 29.6 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), DFII’s low point in its 52 week range is $10.99 per share, with $26.52 as the 52 week high point — that compares with a last trade of $11.12. FT Vest Bitcoin Strategy & Target Income shares are currently trading off about 2.7% on the day.
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Further DFII Research:
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