In trading on Thursday, shares of the AB New York Intermediate Municipal ETF (Symbol: NYM) entered into oversold territory, changing hands as low as $24.41 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 AB New York Intermediate Municipal, the RSI reading has hit 21.1 — by comparison, the RSI reading for the S&P 500 is currently 59.4.
A bullish investor could look at NYM’s 21.1 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), NYM’s low point in its 52 week range is $24.41 per share, with $25.40 as the 52 week high point — that compares with a last trade of $24.57. AB New York Intermediate Municipal shares are currently trading down about 0.8% on the day.
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Further NYM Research:
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