FXP Crowded With Sellers
ETF Channel Staff - Thursday, January 10, 3:55 PMIn trading on Thursday, shares of the Proshares UltraShort FTSE China 25 ETF (FXP) entered into oversold territory, changing hands as low as $16.4901 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 FTSE China 25, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 66.0.
A bullish investor could look at FXP's 29.2 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), FXP's low point in its 52 week range is $16.27 per share, with $32.35 as the 52 week high point — that compares with a last trade of $16.49. Proshares UltraShort FTSE China 25 shares are currently trading off about 3.1% on the day.
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