Vanguard Russell 2000 (VTWO) Enters Oversold Territory

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In trading on Friday, shares of the Vanguard Russell 2000 ETF (Symbol: VTWO) entered into oversold territory, changing hands as low as $128.97 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 Russell 2000, the RSI reading has hit 28.2 - by comparison, the RSI reading for the S&P 500 is currently 45.4. A bullish investor could look at VTWO's 28.2 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), VTWO's low point in its 52 week range is $114.42 per share, with $139.27 as the 52 week high point - that compares with a last trade of $130.27. Vanguard Russell 2000 shares are currently trading off about 0.9% on the day.

Vanguard Russell 2000 1 Year Performance Chart

Click here to find out what 9 other oversold dividend stocks you need to know about »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , ETFs
Referenced Symbols: VTWO

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