Oversold Conditions For PowerShares DB Gold Double Long ETN (DGP)

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Thursday, shares of PowerShares DB Gold Double Long ETN ( DGP) entered into oversold territory, hitting an RSI reading of 27.4, after changing hands as low as $30.0276 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 42.7. A bullish investor could look at DGP's 27.4 RSI reading today 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. The chart below shows the one year performance of DGP shares:

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

PowerShares DB Gold Double Long ETN 1 Year Performance Chart

Looking at the chart above, DGP's low point in its 52 week range is $30.0276 per share, with $60.33 as the 52 week high point — that compares with a last trade of $30.22.

null

If you liked this article you might like

If You Own a Deutsche Bank-sponsored ETF or ETN, Read This Now

Gold's Run Far From Over, Experts Say

Anxious Over Global Market Turmoil? Here Are Your Best Gold Investments Now

Gold And Common Myths: 1658- Present

Top Uptrending Gold Stocks

Top Uptrending Gold Stocks