SPOG Crosses Critical Technical Indicator

In trading on Tuesday, shares of the Leverage Shares 2X Long SPOT Daily ETF (Symbol: SPOG) entered into oversold territory, changing hands as low as $5.48 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 Leverage Shares 2X Long SPOT Daily, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 66.4. A bullish investor could look at SPOG's 27.2 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), SPOG's low point in its 52 week range is $5.48 per share, with $15.27 as the 52 week high point — that compares with a last trade of $5.88. Leverage Shares 2X Long SPOT Daily shares are currently trading down about 25.7% on the day.

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