Shares of PFXF Now Oversold

In trading on Wednesday, shares of the Preferred Securities ex Financials ETF ( PFXF) entered into oversold territory, changing hands as low as $19.90 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 Preferred Securities ex Financials, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 36.9.

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

A bullish investor could look at PFXF's 28.5 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), PFXF's low point in its 52 week range is $18.26 per share, with $21.77 as the 52 week high point — that compares with a last trade of $19.91. Preferred Securities ex Financials shares are currently trading down about 0.8% on the day.

Preferred Securities ex Financials 1 Year Performance Chart

If you liked this article you might like

Preferred Securities Ex Financials (PFXF) Shares Cross Below 200 DMA

Preferred Securities Ex Financials (PFXF) Shares Cross Below 200 DMA

Something Different: 3 High-Yield, Alternative Income ETFs

Something Different: 3 High-Yield, Alternative Income ETFs

Are Preferred Stocks Worth the Risks?

Are Preferred Stocks Worth the Risks?

Finding Richer Yields With Preferred Shares

Finding Richer Yields With Preferred Shares

New Preferred-Stock ETF Seeks to Avoid Financials

New Preferred-Stock ETF Seeks to Avoid Financials