Shares Of BIS Now Oversold

In trading on Friday, shares of the Proshares UltraShort Nasdaq Biotechnology ETF (BIS) entered into oversold territory, changing hands as low as $25.13 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 29.6 — by comparison, the RSI reading for the S&P 500 is currently 62.5.

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

A bullish investor could look at BIS'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), BIS's low point in its 52 week range is $24.99 per share, with $79.41 as the 52 week high point — that compares with a last trade of $25.34. Proshares UltraShort Nasdaq Biotechnology shares are currently trading down about 0.4% on the day.

Proshares UltraShort Nasdaq Biotechnology 1 Year Performance Chart

null

More from Stocks

Dow Tumbles as Trump Ratchets Up China Trade Fight

Dow Tumbles as Trump Ratchets Up China Trade Fight

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

Dropbox Is the New Defensive Stock to Own With the Market Falling Apart

Dropbox Is the New Defensive Stock to Own With the Market Falling Apart

3 Warning Signs the Stock Market Could Collapse

3 Warning Signs the Stock Market Could Collapse

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes