VanEck Preferred Securities ETF Shows Signs of Overselling
On Friday, shares of the VanEck Preferred Securities ex Financials ETF (Symbol: PFXF) dipped into oversold territory, trading as low as $16.83 per share. We determine oversold conditions using the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. A stock is considered oversold when the RSI falls below 30.
For VanEck Preferred Securities ex Financials, the current RSI reading stands at 29.2. In contrast, the S&P 500’s RSI is at 35.9. This suggests that PFXF is experiencing a greater degree of selling pressure.
A bullish investor might interpret the 29.2 RSI reading as indicative of an end to recent heavy selling, signaling a potential opportunity to enter the market and purchase the stock.
Reviewing the one-year performance chart below, PFXF has a 52-week low point of $16.77 and a high of $18.45, which positions the last trade at $16.88. Currently, shares of VanEck Preferred Securities ex Financials are trading down approximately 0.5% on 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.
