In trading on Thursday, shares of the Vanguard FTSE Developed Markets ETF (Symbol: VEA) entered into oversold territory, changing hands as low as $34.80 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 FTSE Developed Markets, the RSI reading has hit 29.5 - by comparison, the RSI reading for the S&P 500 is currently 34.3. A bullish investor could look at VEA's 29.5 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), VEA's low point in its 52 week range is $34.71 per share, with $42.51 as the 52 week high point - that compares with a last trade of $35.08. Vanguard FTSE Developed Markets shares are currently trading off about 1.3% on the day.