In trading on Tuesday, shares of the ProShares Ultra Bitcoin ETF (Symbol: BITU) entered into oversold territory, changing hands as low as $10.8499 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 ProShares Ultra Bitcoin, the RSI reading has hit 26.5 — by comparison, the RSI reading for the S&P 500 is currently 75.6.
A bullish investor could look at BITU’s 26.5 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), BITU’s low point in its 52 week range is $10.41 per share, with $65.77 as the 52 week high point — that compares with a last trade of $10.90. ProShares Ultra Bitcoin shares are currently trading off about 12.2% on the day.
Find out what 9 other oversold stocks you need to know about »
Further BITU Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
