Markets
KYN

Kayne Anderson MLP Investment Becomes Oversold (KYN)

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 Tuesday, shares of Kayne Anderson MLP Investment Company (Symbol: KYN) entered into oversold territory, hitting an RSI reading of 27.4, after changing hands as low as $12.45 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 74.8. A bullish investor could look at KYN's 27.4 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 KYN shares:

Kayne Anderson MLP Investment Company 1 Year Performance Chart

Looking at the chart above, KYN's low point in its 52 week range is $12.2585 per share, with $16.49 as the 52 week high point — that compares with a last trade of $12.46.

Find out what 9 other oversold 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.

In This Story

KYN

Other Topics

Stocks

Latest Markets Videos