Capital Group Municipal Income ETF Shows Oversold Signals

During trading on Wednesday, shares of the Capital Group Municipal Income ETF (Symbol: CGMU) dropped into oversold territory, with prices reaching as low as $26.765 per share. Oversold conditions are identified through the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. An asset is labeled oversold when its RSI falls below 30.

The RSI for Capital Group Municipal Income currently stands at 27.2. In comparison, the S&P 500 has an RSI reading of 45.2. This lower RSI value may encourage bullish investors to view CGMU’s situation as an opportunity, suggesting that the intense selling pressure may soon dissipate, potentially creating favorable entry points for purchasers.

Examining the one-year performance chart, CGMU has a low point in its 52-week range at $26.561 per share, while the 52-week peak hit $27.54. Notably, the last recorded trade was at $26.79, indicating that Capital Group Municipal Income shares are currently trading down approximately 0.4% on the day.

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