iShares National Muni Bond Getting Very Oversold

In trading on Thursday, shares of the iShares National Muni Bond ETF (Symbol: MUB) entered into oversold territory, changing hands as low as $115.485 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 iShares National Muni Bond, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 61.6. A bullish investor could look at MUB's 28.6 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), MUB's low point in its 52 week range is $114.9113 per share, with $118.04 as the 52 week high point — that compares with a last trade of $115.46. iShares National Muni Bond shares are currently trading down about 0.3% on the day.

iShares National Muni Bond 1 Year Performance Chart

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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.

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