Proshares Ultra VIX Short-Term Futures Getting Very Oversold
ETF Channel Staff - Friday, January 18, 3:55 PMIn trading on Friday, shares of the Proshares Ultra VIX Short-Term Futures ETF (UVXY) entered into oversold territory, changing hands as low as $11.62 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 Ultra VIX Short-Term Futures, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 70.6.
A bullish investor could look at UVXY'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), UVXY's low point in its 52 week range is $11.62 per share, with $565.80 as the 52 week high point — that compares with a last trade of $11.67. Proshares Ultra VIX Short-Term Futures shares are currently trading off about 11.9% on the day.
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