Vanguard Growth Getting Very Oversold

In trading on Monday, shares of the Vanguard Growth ETF (Symbol: VUG) entered into oversold territory, changing hands as low as $376.0811 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 Growth, the RSI reading has hit 26.3 — by comparison, the RSI reading for the S&P 500 is currently 31.0. A bullish investor could look at VUG's 26.3 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), VUG's low point in its 52 week range is $321.2923 per share, with $429.11 as the 52 week high point — that compares with a last trade of $375.66. Vanguard Growth shares are currently trading off about 3.2% on the day.

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