In trading on Tuesday, shares of the ProShares UltraShort Yen ETF (Symbol: YCS) entered into oversold territory, changing hands as low as $51 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 Yen, the RSI reading has hit 25.9 — by comparison, the RSI reading for the S&P 500 is currently 55.7.
A bullish investor could look at YCS’s 25.9 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), YCS’s low point in its 52 week range is $42.92 per share, with $57.92 as the 52 week high point — that compares with a last trade of $51.38. ProShares UltraShort Yen shares are currently trading off about 3% on the day.
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