In trading on Monday, shares of the Direxion Daily Regional Banks Bull 3X ETF (Symbol: DPST) entered into oversold territory, changing hands as low as $129.8564 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 Direxion Daily Regional Banks Bull 3X, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 51.9.
A bullish investor could look at DPST’s 28.7 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), DPST’s low point in its 52 week range is $72.66 per share, with $158.88 as the 52 week high point — that compares with a last trade of $130.49. Direxion Daily Regional Banks Bull 3X shares are currently trading down about 3.1% on the day.
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