In trading on Tuesday, shares of the Vanguard Mid-Cap Growth ETF (Symbol: VOT) entered into oversold territory, changing hands as low as $94.7601 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 Mid-Cap Growth, the RSI reading has hit 28.7 - by comparison, the RSI reading for the S&P 500 is currently 32.2. A bullish investor could look at VOT's 28.7 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), VOT's low point in its 52 week range is $84.46 per share, with $110.11 as the 52 week high point - that compares with a last trade of $95.02. Vanguard Mid-Cap Growth shares are currently trading down about 0.8% on the day.