MVV Crosses Critical Technical Indicator

In trading on Monday, shares of the Proshares Ultra MidCap400 ETF (MVV) entered into oversold territory, changing hands as low as $65.03 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 Ultra MidCap400, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 35.1.

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A bullish investor could look at MVV'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), MVV's low point in its 52 week range is $48.29 per share, with $73.81 as the 52 week high point — that compares with a last trade of $65.06. Proshares Ultra MidCap400 shares are currently trading down about 0.3% on the day.

Proshares Ultra MidCap400 1 Year Performance Chart

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