Shares Of DRN Now Oversold

In trading on Tuesday, shares of the Daily Real Estate Bull 3x Shares ETF ( DRN) entered into oversold territory, changing hands as low as $64.49 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 Real Estate Bull 3x Shares, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 36.9.

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A bullish investor could look at DRN's 29.4 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), DRN's low point in its 52 week range is $52.18 per share, with $105.07 as the 52 week high point — that compares with a last trade of $64.50. Daily Real Estate Bull 3x Shares shares are currently trading down about 2.1% on the day.