VanEck Preferred Securities ETF Hits Oversold Status Amid Heavy Selling
On Tuesday, trading for the VanEck Preferred Securities ex Financials ETF (Symbol: PFXF) saw shares dip into oversold territory, reaching as low as $16.53 each. This classification of oversold is determined using the Relative Strength Index (RSI), an indicator of momentum that operates on a scale from zero to 100. According to this metric, a stock is deemed oversold when its RSI falls below 30.
Currently, the VanEck Preferred Securities ex Financials display an RSI reading of 26.9. For context, the RSI for the broader S&P 500 index sits higher at 36.7. This significant difference suggests that PFXF may be experiencing considerable downward pressure.
From a bullish perspective, investors might interpret the 26.9 RSI as an indication that recent sell-offs are nearing exhaustion. This type of reading could signal potential entry points for buying the ETF if market conditions stabilize.
Reviewing the one-year performance chart below, PFXF’s shares have a 52-week low of $16.53 and a high of $18.45. The most recent trade price stands at $16.57, reflecting a decrease of approximately 1.2% for the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
