GLL Crowded With Sellers

In trading on Thursday, shares of the Proshares UltraShort Gold ETF (GLL) entered into oversold territory, changing hands as low as $84.7945 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 Gold, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 60.0.

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A bullish investor could look at GLL's 29.7 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), GLL's low point in its 52 week range is $66.15 per share, with $114.96 as the 52 week high point — that compares with a last trade of $84.92. Proshares UltraShort Gold shares are currently trading off about 1.9% on the day.

Proshares UltraShort Gold 1 Year Performance Chart

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