SHM Crowded With Sellers

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 $46.06 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 28.6 — by comparison, the RSI reading for the S&P 500 is currently 36.2. A bullish investor could look at SHM'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), SHM's low point in its 52 week range is $45.97 per share, with $47.76 as the 52 week high point — that compares with a last trade of $46.07. SPDR Nuveen Bloomberg Short Term Municipal Bond shares are currently trading down about 0.4% on the day.

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