In trading on Thursday, shares of the Proshares UltraShort Real Estate ETF (SRS) entered into oversold territory, changing hands as low as $19.63 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 Real Estate, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 66.4.
A bullish investor could look at SRS's 28.8 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), SRS's low point in its 52 week range is $16.84 per share, with $28.31 as the 52 week high point — that compares with a last trade of $19.62. Proshares UltraShort Real Estate shares are currently trading down about 2.9% on the day.