In trading on Thursday, shares of the Daily Natural Gas Related Bear 3x Shares ETF (GASX) entered into oversold territory, changing hands as low as $18.00 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 Natural Gas Related Bear 3x Shares, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 63.7.
A bullish investor could look at GASX's 29.1 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), GASX's low point in its 52 week range is $18.00 per share, with $65.60 as the 52 week high point — that compares with a last trade of $18.13. Daily Natural Gas Related Bear 3x Shares shares are currently trading down about 3.1% on the day.