Three weeks ago I took a trade in the Municipal Bond ETF (MUB) based on this technical review: Municipals Are Interesting For a Trade. It turned out to be a great trade but shook me out on a stop last week. Now heading into the end of the month, a review of that Municipals chart with a longer timeframe suggests that it is the place to be on a longer-time scale as well. At January's end, the ETF is moving above the 20-month Simple Moving Average for the first time since May 2013. The current move targets a Measured move higher to the 110 area and above that the broad movement suggests that 120 is possible.
The Play
The upward price action is supported by the rising RSI and the MACD flattening is a positive sign, although not reenforcing yet. For the longer-term investor, an entry here with a stop under the monthly low at about 103 shows a very good reward to risk ratio. It has options as well so you can make some extra income selling covered calls along the way.