EFU Crosses Critical Technical Indicator
ETF Channel Staff - Friday, January 25, 11:36 AMIn trading on Friday, shares of the Proshares UltraShort MSCI EAFE ETF (EFU) entered into oversold territory, changing hands as low as $15.30 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 EAFE, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 73.5.
A bullish investor could look at EFU's 27.0 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), EFU's low point in its 52 week range is $15.18 per share, with $27.97 as the 52 week high point — that compares with a last trade of $15.39. Proshares UltraShort MSCI EAFE shares are currently trading off about 1.6% on the day.
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