UGL Crowded With Sellers
ETF Channel Staff - Thursday, December 20, 11:31 AMIn trading on Thursday, shares of the Proshares Ultra Gold ETF (UGL) entered into oversold territory, changing hands as low as $82.341 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 Gold, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 58.5.
A bullish investor could look at UGL's 29.9 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), UGL's low point in its 52 week range is $73.50 per share, with $102.49 as the 52 week high point — that compares with a last trade of $82.52. Proshares Ultra Gold shares are currently trading off about 3% on the day.
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