In trading on Monday, shares of the Direxion Daily Semiconductors Bear 3x Shares ETF (Symbol: SOXS) entered into oversold territory, trading as low as $3.80 per share. The concept of oversold territory is defined using the Relative Strength Index (RSI), a technical analysis indicator that measures momentum on a scale from zero to 100. A stock is deemed oversold when its RSI reading falls below 30.
For the Direxion Daily Semiconductors Bear 3x Shares, the RSI reading has reached **29.9**. In contrast, the RSI for the **S&P 500** currently stands at **59.1**. This disparity suggests that SOXS may be experiencing significant selling pressure, which could be nearing its end. A bullish investor might interpret the **29.9** RSI reading as a potential signal that the recent heavy selling is exhausting itself, prompting them to seek entry points for buying opportunities.
Examining a one-year performance chart (shown below), SOXS’s low point in its **52-week range** is **$3.77** per share, while the high point is **$53.43**. The last trade was recorded at **$3.79**, indicating that shares are currently down about **6%** on the day.
Free Report: Top 8%+ Dividends (paid monthly)
Find out what 9 other oversold stocks you need to know about »
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
