In trading on Friday, shares of the Franklin Municipal Green Bond ETF (Symbol: FLMB) entered into oversold territory, changing hands as low as $23.38 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 Franklin Municipal Green Bond, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 51.1.
A bullish investor could look at FLMB’s 29.4 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), FLMB’s low point in its 52 week range is $22.78 per share, with $24.29 as the 52 week high point — that compares with a last trade of $23.42. Franklin Municipal Green Bond shares are currently trading off about 0.1% on the day.
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Further FLMB Research:
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