Shares of BRZU Now Oversold
In trading on Friday, shares of the Direxion Daily MSCI Brazil Bull 2X Shares ETF (Symbol: BRZU) entered into oversold territory, changing hands as low as $93.79 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 Direxion Daily MSCI Brazil Bull 2X Shares, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 75.2. A bullish investor could look at BRZU'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), BRZU's low point in its 52 week range is $54.07 per share, with $133.04 as the 52 week high point — that compares with a last trade of $95.74. Direxion Daily MSCI Brazil Bull 2X Shares shares are currently trading off about 1.3% on the day.
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