Vanguard Extended Duration Treasury (EDV) Enters Oversold Territory

In trading on Tuesday, shares of the Vanguard Extended Duration Treasury ETF (Symbol: EDV) entered into oversold territory, changing hands as low as $67.07 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 Extended Duration Treasury, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 51.3. A bullish investor could look at EDV's 28.8 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), EDV's low point in its 52 week range is $67.07 per share, with $83.97 as the 52 week high point — that compares with a last trade of $67.19. Vanguard Extended Duration Treasury shares are currently trading down about 2% on the day.

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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.