FIXD Shares Reach Oversold Territory: What It Means for Investors

Published On: October 21, 2024 5:55 pm

First Trust TCW Opportunistic Fixed Income ETF Faces Oversold Conditions

Investors Eye Potential Buying Opportunities Amidst RSI Drop

In trading on Monday, shares of the First Trust TCW Opportunistic Fixed Income ETF (Symbol: FIXD) dipped into oversold territory, reaching as low as $44.11 per share. Oversold territory is defined by the Relative Strength Index (RSI), a technical analysis tool measuring momentum on a scale of zero to 100. An RSI reading below 30 indicates that a stock is considered oversold.

Currently, the RSI for First Trust TCW Opportunistic Fixed Income stands at 29.6, contrasting sharply with the S&P 500’s RSI of 66.2. This difference suggests that FIXD has experienced significant selling pressure recently.

For bullish investors, the 29.6 RSI reading might indicate that the heavy selling could be waning, prompting them to explore potential buying opportunities.

Analyzing its performance over the past year (see chart below), FIXD’s 52-week low was $40.86 per share, while its high reached $46. The latest trade saw shares at $44.12, reflecting a decline of approximately 0.7% on the day.

First Trust TCW Opportunistic Fixed Income 1 Year Performance Chart