JDST Crosses Critical Technical Indicator

In trading on Thursday, shares of the Daily Junior Gold Miners Index Bear 3x Shares ETF (JDST) entered into oversold territory, changing hands as low as $6.25 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 Junior Gold Miners Index Bear 3x Shares, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 56.0.

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

A bullish investor could look at JDST'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), JDST's low point in its 52 week range is $6.25 per share, with $41.83 as the 52 week high point — that compares with a last trade of $6.36. Daily Junior Gold Miners Index Bear 3x Shares shares are currently trading down about 5.5% on the day.

Daily Junior Gold Miners Index Bear 3x Shares 1 Year Performance Chart

More from Stocks

Market Can't Handle the Wild Ride: Cramer's 'Mad Money' Recap (Thursday 5/24/18)

Market Can't Handle the Wild Ride: Cramer's 'Mad Money' Recap (Thursday 5/24/18)

Replay: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Replay: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Canopy Growth: First Cannabis Firm on the NYSE Fails to Generate Buzz

Video: This Startup Connects Buyers and Sellers of Legal Marijuana

Video: This Startup Connects Buyers and Sellers of Legal Marijuana

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit