Vanguard Dividend Appreciation (VIG) Enters Oversold Territory

Vanguard Dividend Appreciation (VIG) Enters Oversold Territory

China's main state-owned banks stated to be shopping for {dollars} to restrict yuan appreciation – report – ForexLive
Nonetheless scope for yuan appreciation regardless of the PBOC weekend coverage transfer – ForexLive
China policymakers reportedly snug with yuan appreciation for now – ForexLive

In trading on Friday, shares of the Vanguard Dividend Appreciation ETF (Symbol: VIG) entered into oversold territory, changing hands as low as $159.82 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 Dividend Appreciation, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 28.8.

A bullish investor could look at VIG’s 28.8 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), VIG’s low point in its 52 week range is $136.02 per share, with $172.87 as the 52 week high point — that compares with a last trade of $160.21. Vanguard Dividend Appreciation shares are currently trading down about 0.8% on the day.

Vanguard Dividend Appreciation 1 Year Performance Chart


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