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.

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

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

null

More from Stocks

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

Novo Nordisk Stock Rises 4% Over 2 Sessions

Novo Nordisk Stock Rises 4% Over 2 Sessions

Stock Market Just Took Another Beating -- Here's What You Need to Know

Stock Market Just Took Another Beating -- Here's What You Need to Know

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins

Daimler's Profit Warning Should Terrify Traders Before Earnings Season Begins