In trading on Wednesday, shares of the First Trust Preferred Securities and Income ETF ( FPE) entered into oversold territory, changing hands as low as $18.78 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 Preferred Securities and Income, the RSI reading has hit 25.3 — by comparison, the RSI reading for the S&P 500 is currently 32.8. A bullish investor could look at FPE'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), FPE's low point in its 52 week range is $17.51 per share, with $20.00 as the 52 week high point — that compares with a last trade of $18.78. First Trust Preferred Securities and Income shares are currently trading off about 0.4% on the day.