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 – 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 – compare with a final trade of $54.87. Shares of First Trust Managed Municipal are currently trading down around 0.2% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.