In trading on Wednesday, shares of the ProShares Short Ether Strategy ETF (Symbol: SETH) entered into oversold territory, changing hands as low as $39.28 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 Short Ether Strategy, the RSI reading has hit 27.4 — by comparison, the RSI reading for the S&P 500 is currently 57.2.
A bullish investor could look at SETH’s 27.4 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), SETH’s low point in its 52 week range is $29.20 per share, with $62.82 as the 52 week high point — that compares with a last trade of $39.40. ProShares Short Ether Strategy shares are currently trading down about 9.8% on the day.
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