The ETF has had a recent pullback, falling below its 50-day moving average. According to Gillie, the stochastics dropped to extreme oversold levels, which prompted buy signals. Price support on a pullback, high yields and reversals of the indicators support the buy signal, Gillie added. [Why a Muni Bond ETF Tumbled]
iShares S&P National AMT-Free Muni Bond Fund
For more information on munis, visit our municipal bonds category.
Max Chen contributed to this article.