SHI Crosses Critical Technical Indicator

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In trading on Friday, shares of Sinopec Shanghai Petrochemical Co., Ltd. (Symbol: SHI) entered into oversold territory, changing hands as low as $43.50 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 Sinopec Shanghai Petrochemical Co., Ltd., the RSI reading has hit 29.2 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 47.0, the RSI of WTI Crude Oil is at 20.9, the RSI of Henry Hub Natural Gas is presently 76.0, and the 3-2-1 Crack Spread RSI is 43.1. A bullish investor could look at SHI's 29.2 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), SHI's low point in its 52 week range is $42.01 per share, with $74.09 as the 52 week high point - that compares with a last trade of $43.80. Sinopec Shanghai Petrochemical Co., Ltd. shares are currently trading off about 3.3% on the day.

Sinopec Shanghai Petrochemical Co., Ltd. 1 Year Performance Chart

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

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: SHI

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