In trading on Wednesday, shares of the Proshares Short FTSE China 25 ETF (AMEX:YXI) entered into oversold territory, changing hands as low as $38.13 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 Short FTSE China 25, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 37.6.
A bullish investor could look at YXI's 29.8 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), YXI's low point in its 52 week range is $38.13 per share, with $48.07 as the 52 week high point — that compares with a last trade of $38.72. Proshares Short FTSE China 25 shares are currently trading down about 0.7% on the day.
This Article's Word Cloud:AMEXChinaDaveDaysFTSEFindIndexInvestmentMoenningOfferPortfolioProsharesRelativeShortSpecialWednesdayaboutanalysisbeginbelowbullishcomparisonconsideredcouldcurrentlydownenteredhandslookmomentumopportunitiesoversoldperformancepointrangereadingrecentscalesellingsharesharesterritorythattradetradingusingweekwhatwithzero
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.