PFFD Crowded With Sellers
ETF Channel Staff - Wednesday, January 26, 4:12 PMIn trading on Wednesday, shares of the PFFD ETF (PFFD) entered into oversold territory, changing hands as low as $24.54 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 PFFD, the RSI reading has hit 26.6 — by comparison, the RSI reading for the S&P 500 is currently 25.2.
A bullish investor could look at PFFD's 26.6 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), PFFD's low point in its 52 week range is $24.54 per share, with $26.22 as the 52 week high point — that compares with a last trade of $24.56. PFFD shares are currently trading off about 1.2% on the day.
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