In trading on Wednesday, shares of the Franklin Responsibly Sourced Gold ETF (Symbol: FGDL) entered into oversold territory, changing hands as low as $54.456 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 Franklin Responsibly Sourced Gold, the RSI reading has hit 24.8 — by comparison, the RSI reading for the S&P 500 is currently 40.8.
A bullish investor could look at FGDL’s 24.8 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), FGDL’s low point in its 52 week range is $43.41 per share, with $74.24 as the 52 week high point — that compares with a last trade of $54.41. Franklin Responsibly Sourced Gold shares are currently trading down about 3.8% on the day.
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Further FGDL Research:
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