ProShares Ultra QQQ (QLD) Enters Oversold Territory

In trading on Friday, shares of the ProShares Ultra QQQ ETF ( QLD) entered into oversold territory, changing hands as low as $78.88 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 QQQ, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 31.5.

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A bullish investor could look at QLD's 29.5 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), QLD's low point in its 52 week range is $55.63 per share, with $87.84 as the 52 week high point — that compares with a last trade of $79.48. ProShares Ultra QQQ shares are currently trading off about 0.3% on the day.

ProShares Ultra QQQ 1 Year Performance Chart

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