First Trust ISE-Revere Natural Gas Index Fund Getting Very Oversold

In trading on Monday, shares of the First Trust ISE-Revere Natural Gas Index Fund ETF (FCG) entered into oversold territory, changing hands as low as $10.04 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-Revere Natural Gas Index Fund, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 41.8.

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

A bullish investor could look at FCG's 29.3 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), FCG's low point in its 52 week range is $9.49 per share, with $24.12 as the 52 week high point — that compares with a last trade of $10.14. First Trust ISE-Revere Natural Gas Index Fund shares are currently trading down about 0.6% on the day.

First Trust ISE-Revere Natural Gas Index Fund 1 Year Performance Chart

More from Stocks

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

What Does China's Tariff Deal Mean for Automakers Like Tesla?

What Does China's Tariff Deal Mean for Automakers Like Tesla?

Lowe's Taps Home Depot Veteran As New CEO

Lowe's Taps Home Depot Veteran As New CEO