ProShares UltraShort QQQ Getting Very Oversold

In trading on Wednesday, shares of the ProShares UltraShort QQQ ETF (Symbol: QID) entered into oversold territory, changing hands as low as $17.62 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 UltraShort QQQ, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 70.1.

A bullish investor could look at QID’s 27.7 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), QID’s low point in its 52 week range is $17.57 per share, with $37.87 as the 52 week high point — that compares with a last trade of $17.59. ProShares UltraShort QQQ shares are currently trading off about 3% on the day.

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

Also see:

• Past Earnings
• Top Ten Hedge Funds Holding HTHT
• CEF Channel

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