In trading on Friday, shares of the SPDR Nuveen Barclays Municipal Bond ETF (Symbol: TFI) entered into oversold territory, changing hands as low as $23.83 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 Barclays Municipal Bond, the RSI reading has hit 28.8 - by comparison, the RSI reading for the S&P 500 is currently 53.4. A bullish investor could look at TFI's 28.8 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), TFI's low point in its 52 week range is $23.44 per share, with $24.68 as the 52 week high point - that compares with a last trade of $23.89. SPDR Nuveen Barclays Municipal Bond shares are currently trading down about 0.4% on the day.