In trading on Friday, shares of the Direxion Daily Concentrated QS Bear 1x Shares ETF (Symbol: QQQD) entered into oversold territory, changing hands as low as $12.785 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 Direxion Daily Concentrated QS Bear 1x Shares, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 72.1.
A bullish investor could look at QQQD’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), QQQD’s low point in its 52 week range is $12.66 per share, with $21.716 as the 52 week high point — that compares with a last trade of $12.88. Direxion Daily Concentrated QS Bear 1x Shares shares are currently trading off about 1.4% on the day.
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