EDV Crowded With Sellers

In trading on Monday, shares of the Vanguard Extended Duration Treasury ETF (EDV) entered into oversold territory, changing hands as low as $115.70 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 28.9 — by comparison, the RSI reading for the S&P 500 is currently 58.1.

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

A bullish investor could look at EDV's 28.9 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 $100.00 per share, with $141.91 as the 52 week high point — that compares with a last trade of $116.02. Vanguard Extended Duration Treasury shares are currently trading off about 1.7% on the day.

Vanguard Extended Duration Treasury 1 Year Performance Chart

More from Stocks

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted

Why a Global Stock Market Crash Is Coming

Why a Global Stock Market Crash Is Coming

Dump All Your Disney Stock: Doug Kass Insider

Dump All Your Disney Stock: Doug Kass Insider

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout