BLV Crosses Critical Technical Indicator
In trading on Monday, shares of the Vanguard Long-Term Bond ETF (Symbol: BLV) entered into oversold territory, changing hands as low as $89.9001 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 Long-Term Bond, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 41.8. A bullish investor could look at BLV's 29.3 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), BLV's low point in its 52 week range is $89.9001 per share, with $107.11 as the 52 week high point — that compares with a last trade of $89.95. Vanguard Long-Term Bond shares are currently trading off about 1.9% on the day.
