SVXY Crosses Critical Technical Indicator

In trading on Friday, shares of the ProShares Short VIX Short-Term Futures ETF (SVXY) entered into oversold territory, changing hands as low as $59.14 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 VIX Short-Term Futures, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 43.1.

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A bullish investor could look at SVXY'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), SVXY's low point in its 52 week range is $48.29 per share, with $93.33 as the 52 week high point — that compares with a last trade of $60.25. ProShares Short VIX Short-Term Futures shares are currently trading down about 3.1% on the day.

ProShares Short VIX Short-Term Futures 1 Year Performance Chart

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