QID Crowded With Sellers

In trading on Tuesday, shares of the Proshares UltraShort QQQ ETF (QID) entered into oversold territory, changing hands as low as $15.0809 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 QQQ, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 71.5.

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

A bullish investor could look at QID'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), QID's low point in its 52 week range is $15.02 per share, with $31.12 as the 52 week high point — that compares with a last trade of $15.08. Proshares UltraShort QQQ shares are currently trading down about 0.5% on the day.

Proshares UltraShort QQQ 1 Year Performance Chart

More from Stocks

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer on Foot Locker's Earnings: Nike Is a Buy

Jim Cramer on Foot Locker's Earnings: Nike Is a Buy

Video: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Top U.S. Regulators May Be Sowing the Seeds of the Next Financial Crisis

Top U.S. Regulators May Be Sowing the Seeds of the Next Financial Crisis