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Shares Of MZZ Now Oversold

Tickers in this article: MZZ
In trading on Friday, shares of the Proshares UltraShort MidCap400 ETF entered into oversold territory, changing hands as low as $17.38 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 UltraShort MidCap400, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 72.9.

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A bullish investor could look at MZZ's 29.6 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), MZZ's low point in its 52 week range is $17.34 per share, with $36.14 as the 52 week high point — that compares with a last trade of $17.34. Proshares UltraShort MidCap400 shares are currently trading off about 1.9% on the day.

Proshares UltraShort MidCap400 1 Year Performance Chart