BAB Crowded With Sellers

In trading on Tuesday, shares of the Invesco Taxable Municipal Bond ETF (Symbol: BAB) entered into oversold territory, changing hands as low as $25.815 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 Taxable Municipal Bond, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 39.5.

A bullish investor could look at BAB’s 29.9 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), BAB’s low point in its 52 week range is $25.6099 per share, with $28.1199 as the 52 week high point — that compares with a last trade of $25.84. Invesco Taxable Municipal Bond shares are currently trading down about 0.2% on the day.

Click here to find out what 9 other oversold dividend stocks you need to know about »

Also see:

• RARE Videos
• Funds Holding CGXU
• ETFs Holding BRKS

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