UBT Crosses Critical Technical Indicator

In trading on Wednesday, shares of the ProShares Ultra 20+ Year Treasury ETF ( UBT) entered into oversold territory, changing hands as low as $82.25 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 ProShares Ultra 20+ Year Treasury, the RSI reading has hit 24.7 — by comparison, the RSI reading for the S&P 500 is currently 52.1.

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

A bullish investor could look at UBT's 24.7 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), UBT's low point in its 52 week range is $70.76 per share, with $107.05 as the 52 week high point — that compares with a last trade of $82.06. ProShares Ultra 20+ Year Treasury shares are currently trading off about 4.9% on the day.

ProShares Ultra 20+ Year Treasury 1 Year Performance Chart

If you liked this article you might like

Four ETFs to Prep for Downside Risk in Equities

Four ETFs Which Could Help Protect Your Portfolio

Cliff Fears Fueling Treasuries

Treasuries Riding Bull Market

Treasuries Riding Bull Market

ETFs for Deflation

ETFs for Deflation