In trading on Thursday, shares of the Daily Retail Bull 3x Shares ETF (RETL) entered into oversold territory, changing hands as low as $70.5001 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 Daily Retail Bull 3x Shares, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 57.6.
A bullish investor could look at RETL's 29.7 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), RETL's low point in its 52 week range is $35.17 per share, with $81.78 as the 52 week high point — that compares with a last trade of $71.60. Daily Retail Bull 3x Shares shares are currently trading off about 2.7% on the day.