In trading on Thursday, shares of the ProShares UltraShort QQQ Mega ETF (Symbol: QQDN) entered into oversold territory, changing hands as low as $20.20 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 QQQ Mega, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 75.2.
A bullish investor could look at QQDN’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), QQDN’s low point in its 52 week range is $19.625 per share, with $41.14 as the 52 week high point — that compares with a last trade of $20.20. ProShares UltraShort QQQ Mega shares are currently trading down about 2% on the day.
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Further QQDN Research:
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