VCLT Crosses Critical Technical Indicator
In trading on Wednesday, shares of the Vanguard Long-Term Corporate Bond ETF (Symbol: VCLT) entered into oversold territory, changing hands as low as $97.1239 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 Long-Term Corporate Bond, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 31.9. A bullish investor could look at VCLT's 27.2 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), VCLT's low point in its 52 week range is $88.16 per share, with $109.98 as the 52 week high point — that compares with a last trade of $97.18. Vanguard Long-Term Corporate Bond shares are currently trading off about 4.7% on the day.
