HE Crosses Critical Technical Indicator

In trading on Thursday, shares of Hawaiian Electric Industries Inc (Symbol: HE) entered into oversold territory, changing hands as low as $10.77 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 Hawaiian Electric Industries Inc, the RSI reading has hit 29.6 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 52.6, the RSI of WTI Crude Oil is at 61.8, the RSI of Henry Hub Natural Gas is presently 34.1, and the 3-2-1 Crack Spread RSI is 41.4. A bullish investor could look at HE's 29.6 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), HE's low point in its 52 week range is $9.06 per share, with $40.16 as the 52 week high point — that compares with a last trade of $10.83. Hawaiian Electric Industries Inc shares are currently trading down about 3% on the day.

Hawaiian Electric Industries Inc 1 Year Performance Chart

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

Also see:
• Dividend Giants Widely Held By ETFs
• JEF Stock Predictions
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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