In trading on Friday, shares of the Invesco National AMT-Free Municipal Bond ETF (Symbol: PZA) entered into oversold territory, changing hands as low as $24.84 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 Invesco National AMT-Free Municipal Bond, the RSI reading has hit 29.96 — by comparison, the RSI reading for the S&P 500 is currently 54.5.
A bullish investor could look at PZA’s 29.96 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), PZA’s low point in its 52 week range is $24.75 per share, with $27.51 as the 52 week high point — that compares with a last trade of $24.87. Invesco National AMT-Free Municipal Bond shares are currently trading off about 0.2% on the day.
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