California Resources Stock Getting Very Oversold

In trading on Friday, shares of California Resources Corp (Symbol: CRC) entered into oversold territory, changing hands as low as $49.115 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 California Resources Corp, the RSI reading has hit 27.5 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 48.6, the RSI of WTI Crude Oil is at 46.2, the RSI of Henry Hub Natural Gas is presently 39.4, and the 3-2-1 Crack Spread RSI is 77.2. A bullish investor could look at CRC's 27.5 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), CRC's low point in its 52 week range is $43.09 per share, with $60.41 as the 52 week high point — that compares with a last trade of $49.83. California Resources Corp shares are currently trading off about 2.3% on the day.

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

Also see: