Shares Of REW Now Oversold

In trading on Friday, shares of the Proshares UltraShort Technology ETF ( REW) entered into oversold territory, changing hands as low as $30.01 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 Technology, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 72.9.

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

A bullish investor could look at REW's 29.6 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), REW's low point in its 52 week range is $30.00 per share, with $44.20 as the 52 week high point — that compares with a last trade of $30.00. Proshares UltraShort Technology shares are currently trading down about 0.7% on the day.

Proshares UltraShort Technology 1 Year Performance Chart