In trading on Monday, shares of the Direxion Daily PANW Bear 1X Shares ETF (Symbol: PALD) entered into oversold territory, changing hands as low as $10.22 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 PANW Bear 1X Shares, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 68.5.
A bullish investor could look at PALD’s 28.7 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), PALD’s low point in its 52 week range is $10.18 per share, with $30.87 as the 52 week high point — that compares with a last trade of $10.19. Direxion Daily PANW Bear 1X Shares shares are currently trading off about 5% on the day.
Find out what 9 other oversold stocks you need to know about »
Further PALD Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com