In trading on Friday, shares of the Vanguard Intermediate-Term Treasury ETF (Symbol: VGIT) entered into oversold territory, changing hands as low as $65.545 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 Intermediate-Term Treasury, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 47.9.
A bullish investor could look at VGIT’s 29.9 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), VGIT’s low point in its 52 week range is $65.5049 per share, with $69.295 as the 52 week high point — that compares with a last trade of $65.55. Vanguard Intermediate-Term Treasury shares are currently trading off about 0.4% on the day.
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