Shares Of FRI Now Oversold

In trading on Monday, shares of the First Trust S&P REIT Index Fund ETF ( FRI) entered into oversold territory, changing hands as low as $17.43 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 S&P REIT Index Fund, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 35.3.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at FRI's 28.1 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), FRI's low point in its 52 week range is $16.57 per share, with $21.33 as the 52 week high point — that compares with a last trade of $17.59. First Trust S&P REIT Index Fund shares are currently trading off about 1.8% on the day.

First Trust S&P REIT Index Fund 1 Year Performance Chart
null

If you liked this article you might like

First Trust S&P REIT Index Fund Experiences Big Outflow

Dion's Friday ETF Winners and Losers

Dion's Friday ETF Winners and Losers

Dion's Tuesday ETF Winners and Losers

Dion's Tuesday ETF Winners and Losers

Two Housing Index ETFs Shut Down

Two Housing Index ETFs Shut Down

TheStreet.com Ratings Adds More ETFs