SUB Crowded With Sellers

In trading on Wednesday, shares of the iShares Short-Term National Muni Bond ETF (Symbol: SUB) entered into oversold territory, changing hands as low as $104.101 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 Short-Term National Muni Bond, the RSI reading has hit 28.4 — by comparison, the RSI reading for the S&P 500 is currently 50.7. A bullish investor could look at SUB's 28.4 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), SUB's low point in its 52 week range is $104.101 per share, with $108.06 as the 52 week high point — that compares with a last trade of $104.20. iShares Short-Term National Muni Bond shares are currently trading down about 0.1% on the day.

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