In trading on Thursday, shares of the MAX Airlines 3X Leveraged ETN ETF (Symbol: JETU) entered into oversold territory, changing hands as low as $29.63 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 MAX Airlines 3X Leveraged ETN, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 51.6.
A bullish investor could look at JETU’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), JETU’s low point in its 52 week range is $20.1997 per share, with $43.40 as the 52 week high point — that compares with a last trade of $29.59. MAX Airlines 3X Leveraged ETN shares are currently trading off about 7.4% on the day.
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