Markets
EES

SGY Stock Crowded With Sellers

In trading on Tuesday, shares of Stone Energy Corp. (Symbol: SGY) entered into oversold territory, changing hands as low as $34.46 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 Stone Energy Corp., the RSI reading has hit 28.9 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 44.7, the RSI of WTI Crude Oil is at 31.1, and the RSI of Henry Hub Natural Gas is presently 49.4. A bullish investor could look at SGY's 28.9 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), SGY's low point in its 52 week range is $27.26 per share, with $50.00 as the 52 week high point - that compares with a last trade of $34.51. Stone Energy Corp. shares are currently trading off about 1.7% on the day.

Stone Energy Corp. 1 Year Performance Chart

According to the ETF Finder at ETF Channel, SGY makes up 563.23% of the WisdomTree SmallCap Earnings Fund ETF (Symbol: EES) which is trading lower by about 0.5% on the day Tuesday.

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.


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

EES

Other Topics

Commodities

Latest Markets Videos

    BNK Invest

    BNK Invest Inc. provides investment services and information. BNK Invest owns and operates a market news family of websites including DividendChannel, ETFChannel, StockOptionsChannel, and others, which make up an investor community featuring stock message boards, ratings, research, and strategies. BNK Invest caters to investing firms and individual investors internationally.

    Learn More