VIOO Crowded With Sellers
ETF Channel Staff - Monday, July 19, 11:23 AMIn trading on Monday, shares of the Vanguard S&P Small-Cap 600 ETF (VIOO) entered into oversold territory, changing hands as low as $190.55 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 S&P Small-Cap 600, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 42.2.
A bullish investor could look at VIOO's 29.5 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), VIOO's low point in its 52 week range is $123.16 per share, with $213.67 as the 52 week high point — that compares with a last trade of $192.34. Vanguard S&P Small-Cap 600 shares are currently trading down about 1.8% on the day.
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