SOXS Crosses Critical Technical Indicator

In trading on Monday, shares of the Daily Semiconductor Bear 3x Shares ETF ( SOXS) entered into oversold territory, changing hands as low as $30.681 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 Daily Semiconductor Bear 3x Shares, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 61.2.

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

A bullish investor could look at SOXS'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), SOXS's low point in its 52 week range is $30.60 per share, with $101.28 as the 52 week high point — that compares with a last trade of $30.80. Daily Semiconductor Bear 3x Shares shares are currently trading off about 2% on the day.

Daily Semiconductor Bear 3x Shares 1 Year Performance Chart

If you liked this article you might like

The Market Rebounds on No Volume -- Buyer, Beware!

Market Bears Make It Two in a Row Despite Increased Volume

Finally, a Stock Market Trading Day the Bears Can Cheer About

The Stock Market Continues Its Winning Ways for the Hedge Funds

As the Stock Market Soars, the Bears Continue to Be Frustrated