VHT Crowded With Sellers

In trading on Wednesday, shares of the Vanguard Health Care ETF (Symbol: VHT) entered into oversold territory, changing hands as low as $162.85 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 Health Care, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 68.1. A bullish investor could look at VHT'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), VHT's low point in its 52 week range is $149.548 per share, with $181.916 as the 52 week high point — that compares with a last trade of $162.94. Vanguard Health Care shares are currently trading down about 2.2% on the day.

Vanguard Health Care 1 Year Performance Chart

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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