In trading on Wednesday, shares of Suncor Energy Inc (Symbol: SU) entered into oversold territory, changing hands as low as $11.595 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 Suncor Energy Inc, the RSI reading has hit 29.7 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 49.8, the RSI of WTI Crude Oil is at 51.3, the RSI of Henry Hub Natural Gas is presently 63.8, and the 3-2-1 Crack Spread RSI is 32.5. A bullish investor could look at SU's 29.7 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), SU's low point in its 52 week range is $9.605 per share, with $34.56 as the 52 week high point — that compares with a last trade of $11.61. Suncor Energy Inc shares are currently trading down about 2.5% on the day.