In trading on Wednesday, shares of the Clough Hedged Equity ETF (Symbol: CBLS) entered into oversold territory, changing hands as low as $29.82 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 Clough Hedged Equity, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 45.0.
A bullish investor could look at CBLS’s 27.7 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), CBLS’s low point in its 52 week range is $27.02 per share, with $34.52 as the 52 week high point — that compares with a last trade of $29.85. Clough Hedged Equity shares are currently trading down about 1.6% on the day.
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Further CBLS Research:
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