Proshares UltraShort Nasdaq Biotechnology (BIS) Enters Oversold Territory

In trading on Tuesday, shares of the Proshares UltraShort Nasdaq Biotechnology ETF (BIS) entered into oversold territory, changing hands as low as $43.97 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 Nasdaq Biotechnology, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 54.6.

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

A bullish investor could look at BIS's 29.4 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), BIS's low point in its 52 week range is $42.32 per share, with $101.68 as the 52 week high point — that compares with a last trade of $43.97. Proshares UltraShort Nasdaq Biotechnology shares are currently trading off about 1.2% on the day.

Proshares UltraShort Nasdaq Biotechnology 1 Year Performance Chart

null

More from Stocks

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Jim Cramer on U.S.-China Trade: The Media Has it Wrong

Is Tesla's Stock Set to Nearly Double to $500?

Is Tesla's Stock Set to Nearly Double to $500?

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why