Vanguard’s Short-Term Treasuries Are Highly Oversold

IDuring Friday’s session, shares of the Vanguard Short-Term Treasury ETF (Symbol: VGSH) entered oversold territory, changing hands as low as $59.04 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 oversold if the RSI reading falls below 30.

In the case of Vanguard Short-Term Treasury, the RSI reading reached 29.3 – in comparison, the RSI reading for the S&P 500 is currently 55.3. A bullish investor might take the VGSH reading of 29.3 as a sign that the recent selloff is running out of steam and starting to look for entry point opportunities on the buy side.

Looking at a one-year performance chart (below), VGSH’s low point in its 52-week range is $59 per share, with $61.64 as its 52-week high – compare with a last transaction of $59.05. Vanguard’s short-term Treasury shares are currently trading around 0.1% lower on the day.

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