In trading on Monday, shares of Suburban Propane Partners LP (Symbol: SPH) entered into oversold territory, changing hands as low as $22.245 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 Suburban Propane Partners LP, the RSI reading has hit 23.5 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 52.8, the RSI of WTI Crude Oil is at 55.6, the RSI of Henry Hub Natural Gas is presently 52.4, and the 3-2-1 Crack Spread RSI is 48.0. A bullish investor could look at SPH's 23.5 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), SPH's low point in its 52 week range is $21.851 per share, with $27.05 as the 52 week high point - that compares with a last trade of $22.39. Suburban Propane Partners LP shares are currently trading trading flat on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.