In trading on Tuesday, shares of the Leverage Shares 2X Long BIDU Daily ETF (Symbol: BIDG) entered into oversold territory, changing hands as low as $6.585 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 Leverage Shares 2X Long BIDU Daily, the RSI reading has hit 23.2 — by comparison, the RSI reading for the S&P 500 is currently 57.2.
A bullish investor could look at BIDG’s 23.2 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), BIDG’s low point in its 52 week range is $6.585 per share, with $27.47 as the 52 week high point — that compares with a last trade of $6.78. Leverage Shares 2X Long BIDU Daily shares are currently trading off about 25% on the day.
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