Invesco Variable Rate Preferred Getting Very Oversold
In trading on Friday, shares of the Invesco Variable Rate Preferred ETF (Symbol: VRP) entered into oversold territory, changing hands as low as $25.2601 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 Invesco Variable Rate Preferred, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 25.4. A bullish investor could look at VRP's 28.1 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), VRP's low point in its 52 week range is $25.21 per share, with $26.50 as the 52 week high point — that compares with a last trade of $25.31. Invesco Variable Rate Preferred shares are currently trading down about 0.3% on the day.
