In trading on Thursday, shares of the Proshares UltraPro Short S&P500 ETF (AMEX: SPXU) entered into oversold territory, changing hands as low as $16.8101 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Proshares UltraPro Short S&P500, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 69.0.
Click here to find out which 10 oversold ETFs stocks you need to know about, at ETFChannel.com »
A bullish investor could look at SPXU's 29.0 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), SPXU's low point in its 52 week range is $16.51 per share, with $42.84 as the 52 week high point — that compares with a last trade of $16.80. Proshares UltraPro Short S&P500 shares are currently trading off about 1.2% on the day.
