Direxion Daily LMT Bull 2X (LMTL) Enters Oversold Territory

In trading on Monday, shares of the Direxion Daily LMT Bull 2X ETF (Symbol: LMTL) entered into oversold territory, changing hands as low as $40.985 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 Direxion Daily LMT Bull 2X, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 69.5.

A bullish investor could look at LMTL’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), LMTL’s low point in its 52 week range is $24.58 per share, with $59.71 as the 52 week high point — that compares with a last trade of $40.95. Direxion Daily LMT Bull 2X shares are currently trading off about 3.7% on the day.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.