Proshares Short FTSE China 25 (YXI) Enters Oversold Territory

In trading on Friday, shares of the Proshares Short FTSE China 25 ETF (YXI) entered into oversold territory, changing hands as low as $29.9601 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 Short FTSE China 25, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 33.6.

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A bullish investor could look at YXI's 28.5 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), YXI's low point in its 52 week range is $29.77 per share, with $39.18 as the 52 week high point — that compares with a last trade of $29.96. Proshares Short FTSE China 25 shares are currently trading down about 1% on the day.

Proshares Short FTSE China 25 1 Year Performance Chart

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