In trading on Monday, shares of the Vanguard Global ex-U.S. Real Estate ETF (Symbol: VNQI) entered into oversold territory, changing hands as low as $47.172 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 Global ex-U.S. Real Estate, the RSI reading has hit 22.2 - by comparison, the RSI reading for the S&P 500 is currently 23.4. A bullish investor could look at VNQI's 22.2 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), VNQI's low point in its 52 week range is $47.172 per share, with $59.96 as the 52 week high point - that compares with a last trade of $49.14. Vanguard Global ex-U.S. Real Estate shares are currently trading off about 4.8% on the day.