In trading on Tuesday, shares of the Apple Incorporated Put Sold ETF (QQQ) entered into oversold territory, changing hands as low as $96.99 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 Apple Incorporated Put Sold, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 43.4.START SLIDESHOW : Find out what 9 other oversold stocks you need to know about »
A bullish investor could look at QQQ’s 28.1 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), QQQ’s low point in its 52 week range is $92.15 per share, with $103.41 as the 52 week high point — that compares with a last trade of $96.99. Apple Incorporated Put Sold shares are currently trading off about 1.2% on the day.