VTV Crosses Critical Technical Indicator
ETF Channel Staff - Wednesday, November 14, 4:58 PMIn trading on Wednesday, shares of the Vanguard Value ETF (VTV) entered into oversold territory, changing hands as low as $55.99 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 Vanguard Value, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 27.9.
A bullish investor could look at VTV's 29.3 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), VTV's low point in its 52 week range is $47.82 per share, with $60.48 as the 52 week high point — that compares with a last trade of $56.06. Vanguard Value shares are currently trading down about 1.1% on the day.
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