In trading on Tuesday, shares of the Defiance Daily Target 2x Long AVAV ETF (Symbol: AVXX) entered into oversold territory, changing hands as low as $10.1601 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 Defiance Daily Target 2x Long AVAV, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 47.4.
A bullish investor could look at AVXX’s 29.7 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), AVXX’s low point in its 52 week range is $9.57 per share, with $73.7445 as the 52 week high point — that compares with a last trade of $10.64. Defiance Daily Target 2x Long AVAV shares are currently trading off about 4% on the day.
Project your dividend income with confidence: Income Calendar tracks your income portfolio like a personal assistant.
Find out what 9 other oversold stocks you need to know about »
Also see:
Energy Stock Channel
Institutional Holders of ABE
The Ten Biggest ETFs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com