In trading on Friday, shares of the Defiance Daily Target 2X Long MP ETF (Symbol: MPL) entered into oversold territory, changing hands as low as $8.29 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 MP, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 44.8.
A bullish investor could look at MPL’s 27.0 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), MPL’s low point in its 52 week range is $8.29 per share, with $54.99 as the 52 week high point — that compares with a last trade of $8.35. Defiance Daily Target 2X Long MP shares are currently trading down about 15.4% on the day.
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Further MPL Research:
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