In trading on Friday, shares of Companhia Paranaense De Energia - COPEL (Symbol: ELP) entered into oversold territory, changing hands as low as $6.18 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 Companhia Paranaense De Energia - COPEL, the RSI reading has hit 29.9 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 36.9, the RSI of WTI Crude Oil is at 24.2, the RSI of Henry Hub Natural Gas is presently 27.0, and the 3-2-1 Crack Spread RSI is 56.6. A bullish investor could look at ELP's 29.9 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), ELP's low point in its 52 week range is $6.18 per share, with $13.74 as the 52 week high point - that compares with a last trade of $6.24. Companhia Paranaense De Energia - COPEL shares are currently trading off about 5% on the day.
According to the ETF Finder at ETF Channel, ELP makes up 1.82% of the Guggenheim International Multi-Asset Income ETF (Symbol: HGI) which is trading relatively unchanged on the day Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.