Shares Of SDOW Now Oversold

In trading on Tuesday, shares of the Proshares UltraPro Short Dow30 ETF ( SDOW) SDOW entered into oversold territory, changing hands as low as $46.75 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 UltraPro Short Dow30, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 62.3.

Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at SDOW's 29.8 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), SDOW's low point in its 52 week range is $46.75 per share, with $98.28 as the 52 week high point — that compares with a last trade of $46.98. Proshares UltraPro Short Dow30 shares are currently trading off about 1.7% on the day.

Proshares UltraPro Short Dow30 1 Year Performance Chart