Invesco California AMT-Free Municipal Bond (PWZ) Enters Oversold Territory
ETF Channel Staff - Thursday, October 19, 12:04 PMIn trading on Thursday, shares of the Invesco California AMT-Free Municipal Bond ETF (PWZ) entered into oversold territory, changing hands as low as $22.82 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 California AMT-Free Municipal Bond, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 42.4.
A bullish investor could look at PWZ's 29.8 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), PWZ's low point in its 52 week range is $22.69 per share, with $25.11 as the 52 week high point — that compares with a last trade of $22.86. Invesco California AMT-Free Municipal Bond shares are currently trading down about 0.4% on the day.
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