In trading on Wednesday, shares of the Proshares UltraShort FTSE Europe ETF ( EPV) entered into oversold territory, changing hands as low as $17.47 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 FTSE Europe, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 63.6. A bullish investor could look at EPV'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), EPV's low point in its 52 week range is $17.38 per share, with $33.31 as the 52 week high point — that compares with a last trade of $17.48. Proshares UltraShort FTSE Europe shares are currently trading off about 1.2% on the day.
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