The first municipality managed by the trust is very oversold

IDuring Wednesday’s trading, shares of the First Trust Managed Municipal ETF (Symbol: FMB) entered oversold territory, changing hands as low as $54.8333 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 oversold if the RSI reading falls below 30.

In the case of First Trust Managed Municipal, the RSI reading reached 28.3 โ€“ in comparison, the RSI reading for the S&P 500 is currently 45.9. A bullish investor might take BMF’s 28.3 reading as a sign that the recent strong selloffs are running out and starting to look for entry point opportunities on the buy side.

Looking at a one-year performance chart (below), BMF’s low point in its 52-week range is $54.64 per share, with $57.8399 as its 52-week high โ€“ compare with a final trade of $54.87. Shares of First Trust Managed Municipal are currently trading down around 0.2% on the day.

Find out what 9 other oversold stocks you need to know ยป

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button