Shares of SHM Now Oversold

In trading on Friday, shares of the SPDR Nuveen Bloomberg Short Term Municipal Bond ETF (Symbol: SHM) entered into oversold territory, changing hands as low as $47.08 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 SPDR Nuveen Bloomberg Short Term Municipal Bond, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 50.4. A bullish investor could look at SHM's 29.6 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), SHM's low point in its 52 week range is $46.06 per share, with $47.89 as the 52 week high point — that compares with a last trade of $47.08. SPDR Nuveen Bloomberg Short Term Municipal Bond shares are currently trading trading flat on the day.

SPDR Nuveen Bloomberg Short Term Municipal 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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