MYY Crosses Critical Technical Indicator
ETF Channel Staff - Monday, August 15, 11:07 AMIn trading on Monday, shares of the ProShares Short MidCap400 ETF (MYY) entered into oversold territory, changing hands as low as $14.01 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 MidCap400, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 74.0.
A bullish investor could look at MYY's 28.9 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), MYY's low point in its 52 week range is $14.01 per share, with $18.64 as the 52 week high point — that compares with a last trade of $14.01. ProShares Short MidCap400 shares are currently trading off about 1% on the day.
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