In trading on Wednesday, shares of the Direxion Daily MU Bull 2X Shares ETF (Symbol: MUU) entered into oversold territory, changing hands as low as $28.85 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 MU Bull 2X Shares, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 54.5.
A bullish investor could look at MUU’s 28.8 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), MUU’s low point in its 52 week range is $0.8365 per share, with $62.64 as the 52 week high point — that compares with a last trade of $31.31. Direxion Daily MU Bull 2X Shares shares are currently trading off about 14.5% on the day.
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Further MUU Research:
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