In trading on Wednesday, shares of the Daily Gold Miners Index Bull 3x Shares ETF (Symbol: NUGT) entered into oversold territory, changing hands as low as $105.25 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 Daily Gold Miners Index Bull 3x Shares, the RSI reading has hit 28.5 - by comparison, the RSI reading for the S&P 500 is currently 55.7. A bullish investor could look at NUGT's 28.5 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), NUGT's low point in its 52 week range is $17.40 per share, with $178.98 as the 52 week high point - that compares with a last trade of $110.47. Daily Gold Miners Index Bull 3x Shares shares are currently trading down about 19.8% on the day.