SDP Crowded With Sellers

In trading on Wednesday, shares of the Proshares UltraShort Utilities ETF ( SDP) entered into oversold territory, changing hands as low as $20.13 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 Utilities, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 64.8.

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A bullish investor could look at SDP's 29.3 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), SDP's low point in its 52 week range is $20.13 per share, with $32.22 as the 52 week high point — that compares with a last trade of $20.25. Proshares UltraShort Utilities shares are currently trading down about 1% on the day.

Proshares UltraShort Utilities 1 Year Performance Chart
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