Vanguard U.S. Quality Factor Getting Very Oversold
ETF Channel Staff - Thursday, April 18, 4:06 PMIn trading on Thursday, shares of the Vanguard U.S. Quality Factor ETF (VFQY) entered into oversold territory, changing hands as low as $127.805 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 U.S. Quality Factor, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 34.0.
A bullish investor could look at VFQY's 29.8 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), VFQY's low point in its 52 week range is $103.55 per share, with $137.44 as the 52 week high point — that compares with a last trade of $127.92. Vanguard U.S. Quality Factor shares are currently trading off about 0.2% on the day.
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