In trading on Thursday, shares of the Vanguard Mega Cap Value ETF (Symbol: MGV) entered into oversold territory, changing hands as low as $77.84 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 Mega Cap Value, the RSI reading has hit 27.6 - by comparison, the RSI reading for the S&P 500 is currently 19.4. A bullish investor could look at MGV's 27.6 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), MGV's low point in its 52 week range is $71.63 per share, with $82.04 as the 52 week high point - that compares with a last trade of $77.90. Vanguard Mega Cap Value shares are currently trading down about 0.7% on the day.