In trading on Thursday, shares of the Defiance Daily Target 2X Short TSM ETF (Symbol: STSM) entered into oversold territory, changing hands as low as $18.625 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 Short TSM, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 69.4.
A bullish investor could look at STSM’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), STSM’s low point in its 52 week range is $18.36 per share, with $66.084 as the 52 week high point — that compares with a last trade of $18.68. Defiance Daily Target 2X Short TSM shares are currently trading down about 3.6% on the day.
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