In trading on Friday, shares of the Proshares UltraShort 20+
Year Treasury ETF (Symbol: TBT) entered into oversold territory,
changing hands as low as $62.0201 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 20+ Year Treasury, the RSI
reading has hit 29.9 - by comparison, the RSI reading for the
S&P 500 is currently 55.6. A bullish investor could look at
TBT'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), TBT's low point
in its 52 week range is $58.23 per share, with $82.80 as the 52
week high point - that compares with a last trade of $62.42.
Proshares UltraShort 20+ Year Treasury shares are currently trading
off about 1.6% on the day.
Find out what 9 other oversold stocks you need to
know about »