Unconventional Oil & Gas (FRAK) Enters Oversold Territory

In trading on Monday, shares of the Unconventional Oil & Gas ETF ( FRAK) entered into oversold territory, changing hands as low as $21.62 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 Unconventional Oil & Gas, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 76.0.

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

A bullish investor could look at FRAK's 28.2 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), FRAK's low point in its 52 week range is $21.62 per share, with $34.90 as the 52 week high point — that compares with a last trade of $21.68. Unconventional Oil & Gas shares are currently trading down about 3.7% on the day.

Unconventional Oil & Gas 1 Year Performance Chart

If you liked this article you might like

3 ETFs to Consider Now That OPEC Has Cut Production

3 ETFs to Consider Now That OPEC Has Cut Production