In trading on Thursday, shares of the Direxion Daily NFLX Bull 2X Shares ETF (Symbol: NFXL) entered into oversold territory, changing hands as low as $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 Direxion Daily NFLX Bull 2X Shares, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 50.0.
A bullish investor could look at NFXL’s 29.6 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), NFXL’s low point in its 52 week range is $19.07 per share, with $73.705 as the 52 week high point — that compares with a last trade of $20.59. Direxion Daily NFLX Bull 2X Shares shares are currently trading off about 1.1% on the day.
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Further NFXL Research:
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