First Trust Rising Dividend Achievers Getting Very Oversold
ETF Channel Staff - Friday, September 22, 10:50 AMIn trading on Friday, shares of the First Trust Rising Dividend Achievers ETF (RDVY) entered into oversold territory, changing hands as low as $46.05 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 First Trust Rising Dividend Achievers, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 34.3.
A bullish investor could look at RDVY'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), RDVY's low point in its 52 week range is $38.34 per share, with $49.6813 as the 52 week high point — that compares with a last trade of $46.21. First Trust Rising Dividend Achievers shares are currently trading off about 0.1% on the day.
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