In trading on Tuesday, shares of the FNDA ETF (Symbol: FNDA) entered into oversold territory, changing hands as low as $52.94 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 FNDA, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 45.3.
A bullish investor could look at FNDA’s 29.7 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), FNDA’s low point in its 52 week range is $40.40 per share, with $58.17 as the 52 week high point — that compares with a last trade of $53.45. FNDA shares are currently trading down about 2.3% on the day.
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