In trading on Friday, shares of the SPDR— S&P— Oil & Gas Exploration & Production ETF (Symbol: XOP) entered into oversold territory, changing hands as low as $20.065 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 SPDR— S&P— Oil & Gas Exploration & Production, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 64.7. A bullish investor could look at XOP's 29.97 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), XOP's low point in its 52 week range is $19.90 per share, with $33.30 as the 52 week high point — that compares with a last trade of $20.40. SPDR— S&P— Oil & Gas Exploration & Production shares are currently trading down about 2.1% 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.