In trading on Thursday, shares of the ProShares ProShares Ultra VIX Short-Term Futures ETF (Symbol: UVXY) entered into oversold territory, changing hands as low as $4.79 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 ProShares ProShares Ultra VIX Short-Term Futures, the RSI reading has hit 29.9 by comparison, the RSI reading for the S&P 500 is currently 67.9. A bullish investor could look at UVXY's 29.9 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), UVXY's low point in its 52 week range is $4.79 per share, with $60.65 as the 52 week high point that compares with a last trade of $4.83. ProShares ProShares Ultra VIX Short-Term Futures shares are currently trading off about 3.2% on the day.