In trading on Thursday, shares of the Defiance Daily Target 2X Long LMND ETF (Symbol: LMNX) entered into oversold territory, changing hands as low as $10.42 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 Long LMND, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 69.4.
A bullish investor could look at LMNX’s 29.0 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), LMNX’s low point in its 52 week range is $10.42 per share, with $55 as the 52 week high point — that compares with a last trade of $10.70. Defiance Daily Target 2X Long LMND shares are currently trading down about 6% on the day.
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