In trading on Wednesday, shares of the ProShares UltraShort Euro ETF (Symbol: EUO) entered into oversold territory, changing hands as low as $29.5301 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 ProShares UltraShort Euro, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 57.2.
A bullish investor could look at EUO’s 29.1 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), EUO’s low point in its 52 week range is $26.93 per share, with $31.13 as the 52 week high point — that compares with a last trade of $29.59. ProShares UltraShort Euro shares are currently trading off about 1.8% on the day.
Find out what 9 other oversold stocks you need to know about »
Further EUO Research:
www.nasdaq.com