FNGU Crowded With Sellers

In trading on Thursday, shares of the MicroSectors FANG+ Index 3X Leveraged ETN ETF (Symbol: FNGU) entered into oversold territory, changing hands as low as $17.72 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 MicroSectors FANG+ Index 3X Leveraged ETN, the RSI reading has hit 27.1 — by comparison, the RSI reading for the S&P 500 is currently 44.1. A bullish investor could look at FNGU's 27.1 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), FNGU's low point in its 52 week range is $7.9502 per share, with $690.455 as the 52 week high point — that compares with a last trade of $17.87. MicroSectors FANG+ Index 3X Leveraged ETN shares are currently trading down about 8.3% on the day.

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