Westar Energy (WR) Shares Enter Oversold Territory

Shutterstock photo

In trading on Thursday, shares of Westar Energy Inc (Symbol: WR) entered into oversold territory, changing hands as low as $50.71 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 Westar Energy Inc, the RSI reading has hit 27.1 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 44.4, the RSI of WTI Crude Oil is at 40.8, the RSI of Henry Hub Natural Gas is presently 53.8, and the 3-2-1 Crack Spread RSI is 49.3. A bullish investor could look at WR's 27.1 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), WR's low point in its 52 week range is $49.46 per share, with $57.50 as the 52 week high point - that compares with a last trade of $50.93. Westar Energy Inc shares are currently trading down about 7.6% on the day.

Westar Energy Inc 1 Year Performance Chart

WR makes up 2.70% of the iShares Edge MSCI Multifactor Utilities ETF (Symbol: UTLF)

Click here to find out which 9 other oversold energy stocks you need to know about »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities
Referenced Symbols: WR , UTLF

More from BNK Invest


BNK Invest

BNK Invest

Market News, Investing
Follow on:

Research Brokers before you trade

Want to trade FX?

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com