Shares of NFXL Now Oversold
In trading on Friday, shares of the Direxion Daily NFLX Bull 2X Shares ETF (Symbol: NFXL) entered into oversold territory, changing hands as low as $12.57 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 NFLX Bull 2X Shares, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 45.2. A bullish investor could look at NFXL's 28.2 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), NFXL's low point in its 52 week range is $12.57 per share, with $63.44 as the 52 week high point — that compares with a last trade of $14.24. Direxion Daily NFLX Bull 2X Shares shares are currently trading down about 15.9% on the day.
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