Shares of MFLX Now Oversold

In trading on Friday, shares of the First Trust Flexible Municipal High Income ETF (Symbol: MFLX) entered into oversold territory, changing hands as low as $16.823 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 First Trust Flexible Municipal High Income, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 54.2.

A bullish investor could look at MFLX's 29.7 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), MFLX's low point in its 52 week range is $16.32 per share, with $17.95 as the 52 week high point — that compares with a last trade of $16.82. First Trust Flexible Municipal High Income shares are currently trading off about 0.4% on the day. Find out what 9 other oversold stocks you need to know about » Further MFLX Research: MFLX Insider Buying Top Ten Hedge Funds Holding MFLX Consumer Stocks Hedge Funds Are Selling

In the case of First Trust Flexible Municipal High Income, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 54.2.

A bullish investor could look at MFLX's 29.7 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), MFLX's low point in its 52 week range is $16.32 per share, with $17.95 as the 52 week high point — that compares with a last trade of $16.82. First Trust Flexible Municipal High Income shares are currently trading off about 0.4% on the day.

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