SPXL Crosses Critical Technical Indicator

In trading on Tuesday, shares of the DIREXION DAILY STANDARD AND POORS 500 BULL 3X SHARES ETF (Symbol: SPXL) entered into oversold territory, changing hands as low as $77.0199 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 STANDARD AND POORS 500 BULL 3X SHARES, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 30.0. A bullish investor could look at SPXL's 29.1 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), SPXL's low point in its 52 week range is $48.97 per share, with $99.20 as the 52 week high point — that compares with a last trade of $77.10. DIREXION DAILY STANDARD AND POORS 500 BULL 3X SHARES shares are currently trading down about 4.8% on the day.

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