SMK Crosses Critical Technical Indicator
ETF Channel Staff - Thursday, September 27, 3:51 PMIn trading on Thursday, shares of the Proshares UltraShort MSCI Mexico Investable Market ETF (SMK) entered into oversold territory, changing hands as low as $29.44 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 MSCI Mexico Investable Market, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 58.1.
A bullish investor could look at SMK's 29.8 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), SMK's low point in its 52 week range is $28.95 per share, with $73.73 as the 52 week high point — that compares with a last trade of $29.44. Proshares UltraShort MSCI Mexico Investable Market shares are currently trading down about 2% on the day.
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