Shares of VOOG Now Oversold

In trading on Monday, shares of the Vanguard S&P 500 Growth ETF (Symbol: VOOG) entered into oversold territory, changing hands as low as $337.5501 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 S&P 500 Growth, the RSI reading has hit 27.3 — by comparison, the RSI reading for the S&P 500 is currently 31.0. A bullish investor could look at VOOG's 27.3 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), VOOG's low point in its 52 week range is $285.237 per share, with $386.44 as the 52 week high point — that compares with a last trade of $337.44. Vanguard S&P 500 Growth shares are currently trading down about 3.1% on the day.

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