Highland Global Allocation Fund Becomes Oversold (HGLB)

By Dividend Channel Staff, Wednesday, November 24, 12:08 PM ET

Start slideshow:
10 Oversold Stocks You Should Know About »

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Wednesday, shares of Highland Global Allocation Fund (NYSE:HGLB) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $8.99 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 71.6. A bullish investor could look at HGLB's 29.2 RSI reading today 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. The chart below shows the one year performance of HGLB shares:

Highland Global Allocation Fund 1 Year Performance Chart

Looking at the chart above, HGLB's low point in its 52 week range is $5.87 per share, with $10.02 as the 52 week high point — that compares with a last trade of $9.02. Find out what 9 other oversold stocks you need to know about »

Can your brain be trained to become a chart-predicting wizard? Click here to find out

This Article's Word Cloud: About Allocation Buffett Click Find Fund Global HGLB Highland Index Know Legendary Looking NYSE Oversold Relative Should Start Stocks Strength Warren Wednesday about above advises after analysis become begin below brain bullish called chart fearful greedy investor look others oversold point raquo reading share shares stock that week when with

Highland Global Allocation Fund Becomes Oversold (HGLB)

Highland Global Allocation Fund Becomes Oversold (HGLB) | www.DividendChannel.com