Shares of FIW Now Oversold
ETF Channel Staff - Wednesday, October 25, 10:50 AMIn trading on Wednesday, shares of the First Trust Water ETF (FIW) entered into oversold territory, changing hands as low as $77.44 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 Water, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 33.2.
A bullish investor could look at FIW's 27.2 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), FIW's low point in its 52 week range is $75.13 per share, with $91.98 as the 52 week high point — that compares with a last trade of $77.91. First Trust Water shares are currently trading off about 1.8% on the day.
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