Shares of VNQ Now Oversold

In trading on Wednesday, shares of the Vanguard Real Estate ETF (Symbol: VNQ) entered into oversold territory, changing hands as low as $78.80 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 Real Estate, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 36.8. A bullish investor could look at VNQ's 29.7 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), VNQ's low point in its 52 week range is $70.6114 per share, with $90.09 as the 52 week high point — that compares with a last trade of $78.90. Vanguard Real Estate shares are currently trading down about 0.4% on the day.

Find out what 9 other oversold stocks you need to know about »

Also see:

• Funds Holding GMEC
• Top Ten Hedge Funds Holding MOND
• Everest Group RSI

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