SRS Crosses Critical Technical Indicator

In trading on Thursday, shares of the Proshares UltraShort Real Estate ETF ( SRS) entered into oversold territory, changing hands as low as $19.63 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 Real Estate, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 66.4.

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

A bullish investor could look at SRS's 28.8 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), SRS's low point in its 52 week range is $16.84 per share, with $28.31 as the 52 week high point — that compares with a last trade of $19.62. Proshares UltraShort Real Estate shares are currently trading down about 2.9% on the day.

Proshares UltraShort Real Estate 1 Year Performance Chart
null

If you liked this article you might like

Shares Of SRS Now Oversold

Class Action Suit Against ProShares Dismissed

REITs Are Flying High

REITs Are Flying High

Top ETF Stories of 2009: Leveraged Funds

Top ETF Stories of 2009: Leveraged Funds

Don Dion's Weekly ETF Winners and Losers

Don Dion's Weekly ETF Winners and Losers