Shares of UST Now Oversold

In trading on Wednesday, shares of the ProShares Ultra 7-10 Year Treasury ETF (UST) entered into oversold territory, changing hands as low as $60.355 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 7-10 Year Treasury, the RSI reading has hit 26.5 — by comparison, the RSI reading for the S&P 500 is currently 52.1.

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A bullish investor could look at UST's 26.5 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), UST's low point in its 52 week range is $55.30 per share, with $65.74 as the 52 week high point — that compares with a last trade of $60.36. ProShares Ultra 7-10 Year Treasury shares are currently trading down about 1.4% on the day.

ProShares Ultra 7-10 Year Treasury 1 Year Performance Chart

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