In trading on Monday, shares of the Vanguard Mid-Cap Value ETF (Symbol: VOE) entered into oversold territory, changing hands as low as $83.88 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 Value, the RSI reading has hit 29.8 - by comparison, the RSI reading for the S&P 500 is currently 35.6. A bullish investor could look at VOE's 29.8 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), VOE's low point in its 52 week range is $65.78 per share, with $94.02 as the 52 week high point - that compares with a last trade of $84.34. Vanguard Mid-Cap Value shares are currently trading off about 0.8% on the day.