In trading on Monday, shares of the Direxion Daily NVDA Bear 1X Shares ETF (Symbol: NVDD) entered into oversold territory, changing hands as low as $32.36 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 NVDA Bear 1X Shares, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 68.1.
A bullish investor could look at NVDD’s 27.5 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), NVDD’s low point in its 52 week range is $32.30 per share, with $71.499 as the 52 week high point — that compares with a last trade of $32.33. Direxion Daily NVDA Bear 1X Shares shares are currently trading off about 3.5% on the day.
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