Daily FTSE China Bear 3x Shares Getting Very Oversold

In trading on Wednesday, shares of the Daily FTSE China Bear 3x Shares ETF ( YANG) entered into oversold territory, changing hands as low as $13.48 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 FTSE China Bear 3x Shares, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 50.1.

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A bullish investor could look at YANG's 29.6 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), YANG's low point in its 52 week range is $13.48 per share, with $33.04 as the 52 week high point — that compares with a last trade of $13.69. Daily FTSE China Bear 3x Shares shares are currently trading off about 3% on the day.

Daily FTSE China Bear 3x Shares 1 Year Performance Chart

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