Invesco Variable Rate Preferred Getting Very Oversold

In trading on Tuesday, shares of the Invesco Variable Rate Preferred ETF (Symbol: VRP) entered into oversold territory, changing hands as low as $22.12 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 29.4 — by comparison, the RSI reading for the S&P 500 is currently 31.9. A bullish investor could look at VRP's 29.4 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 $20.875 per share, with $23.73 as the 52 week high point — that compares with a last trade of $22.13. Invesco Variable Rate Preferred shares are currently trading off about 0.7% on the day.

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