In trading on Wednesday, shares of the Defiance Daily Target 2X Short PLTR ETF (Symbol: PLTZ) entered into oversold territory, changing hands as low as $9.275 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 Short PLTR, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 53.8.
A bullish investor could look at PLTZ’s 28.9 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), PLTZ’s low point in its 52 week range is $8.905 per share, with $44.4352 as the 52 week high point — that compares with a last trade of $9.38. Defiance Daily Target 2X Short PLTR shares are currently trading down about 5.6% on the day.
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