First Trust Dow Jones Internet ETF Shows Oversold Conditions

During trading on Monday, shares of the First Trust Dow Jones Internet Index Fund ETF (Symbol: FDN) hit oversold territory, with prices dropping as low as $224.90 per share. The oversold status is determined using the Relative Strength Index (RSI), a key technical analysis tool that measures market momentum on a scale of zero to 100. A stock is categorized as oversold when its RSI reading dips below 30.

For the First Trust Dow Jones Internet Index Fund, the RSI reading has plummeted to 25.1, which is notably lower than the S&P 500’s current RSI of 31.0. A bullish investor might interpret this 25.1 RSI as an indication that the recent aggressive selling might be nearing its end, potentially presenting buying opportunities.

Examining the ETF’s one-year performance reveals a significant range: the 52-week low is $177.20 per share, while the high is $267.81. The most recent trade closed at $224.78, marking a decrease of about 3.5% for the day.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.