Shares of VTIP Now Oversold
ETF Channel Staff - Monday, October 2, 4:01 PMIn trading on Monday, shares of the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) entered into oversold territory, changing hands as low as $46.83 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 Short-Term Inflation-Protected Securities, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 35.5.
A bullish investor could look at VTIP's 28.9 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), VTIP's low point in its 52 week range is $46.535 per share, with $48.23 as the 52 week high point — that compares with a last trade of $46.84. Vanguard Short-Term Inflation-Protected Securities shares are currently trading off about 0.9% on the day.
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