The First Trust Low Duration ETF Shows Signs of Being Oversold

On Thursday, investors noticed significant activity concerning the First Trust Low Duration Opportunities ETF (Symbol: LMBS). The ETF traded as low as $48.54 per share, entering what is known as oversold territory. This status is identified through the Relative Strength Index (RSI), a popular technical analysis tool that ranges from zero to 100. A reading below 30 indicates that a stock may be oversold.

The current RSI for the First Trust Low Duration Opportunities ETF is 28.5. In comparison, the S&P 500 has an RSI reading of 46.9, indicating different market sentiments.

For bullish investors, the low RSI reading might suggest that the recent intense selling is losing steam. This could present potential opportunities for buying LMBS shares.

Examining its performance over the past year reveals that LMBS has a 52-week low of $45.06 per share, while its 52-week high is recorded at $51.49. As of the last trade, LMBS stood at $48.56, reflecting a slight decrease of about 0.2% 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.