In trading on Monday, shares of the Vanguard Total World Stock ETF (Symbol: VT) entered into oversold territory, changing hands as low as $56.65 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 Total World Stock, the RSI reading has hit 29.4 - by comparison, the RSI reading for the S&P 500 is currently 34.1. A bullish investor could look at VT's 29.4 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), VT's low point in its 52 week range is $53.10 per share, with $64.59 as the 52 week high point - that compares with a last trade of $56.67. Vanguard Total World Stock shares are currently trading down about 0.3% on the day.