Proshares Short Dow30 Getting Very Oversold
ETF Channel Staff - Tuesday, February 12, 12:18 PMIn trading on Tuesday, shares of the Proshares Short Dow30 ETF (DOG) entered into oversold territory, changing hands as low as $32.078 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 Short Dow30, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 70.9.
A bullish investor could look at DOG's 29.7 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), DOG's low point in its 52 week range is $32.05 per share, with $38.58 as the 52 week high point — that compares with a last trade of $32.11. Proshares Short Dow30 shares are currently trading off about 0.2% on the day.
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