In trading on Monday, shares of the First Trust Tactical High Yield ETF (HYLS) entered into oversold territory, changing hands as low as $50.46 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 Tactical High Yield, the RSI reading has hit 25.3 — by comparison, the RSI reading for the S&P 500 is currently 47.2.

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A bullish investor could look at HYLS's 25.3 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), HYLS's low point in its 52 week range is $50.10 per share, with $56.00 as the 52 week high point — that compares with a last trade of $50.46. First Trust Tactical High Yield shares are currently trading down about 0.7% on the day.

First Trust Tactical High Yield 1 Year Performance Chart

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