CXA Crosses Critical Technical Indicator

In trading on Friday, shares of the SPDR Nuveen Barclays California Municipal Bond ETF (CXA) entered into oversold territory, changing hands as low as $23.67 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 SPDR Nuveen Barclays California Municipal Bond, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 53.4.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at CXA'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), CXA's low point in its 52 week range is $23.11 per share, with $24.62 as the 52 week high point — that compares with a last trade of $23.69. SPDR Nuveen Barclays California Municipal Bond shares are currently trading down about 0.4% on the day.

SPDR Nuveen Barclays California Municipal Bond 1 Year Performance Chart

More from Stocks

Dow Futures Pop Despite Rising Trade War Fears

Dow Futures Pop Despite Rising Trade War Fears

Why GE's Stock Has Fallen 9% in the Last 30 Days

Why GE's Stock Has Fallen 9% in the Last 30 Days

5 Stock Picks Under $10 for Millennials

5 Stock Picks Under $10 for Millennials

3 Complicated Investing Strategies Millennials Love

3 Complicated Investing Strategies Millennials Love

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals