First Trust ISE Global Wind Energy Index Fund (FAN) Enters Oversold Territory

In trading on Monday, shares of the First Trust ISE Global Wind Energy Index Fund ETF (FAN) entered into oversold territory, changing hands as low as $11.905 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 ISE Global Wind Energy Index Fund, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 48.9.

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

A bullish investor could look at FAN's 28.8 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), FAN's low point in its 52 week range is $10.04 per share, with $13.60 as the 52 week high point — that compares with a last trade of $11.96. First Trust ISE Global Wind Energy Index Fund shares are currently trading down about 1.2% on the day.

First Trust ISE Global Wind Energy Index Fund 1 Year Performance Chart

More from Stocks

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Google's YouTube in Hot Water Again Over Ads on Inappropriate Content

Google's YouTube in Hot Water Again Over Ads on Inappropriate Content

Should Tesla Nominate a New CEO Not Named Elon Musk?

Should Tesla Nominate a New CEO Not Named Elon Musk?