Petroleum Development Corp. Shares Enter Oversold TerritoryPosted on Wednesday, May 16, 2012 - 13:34 pm
In trading on Tuesday, shares of Petroleum Development Corp. (NASD: PETD) entered into oversold territory, changing hands as low as $ 27.39 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 Petroleum Development Corp., the RSI reading has hit 28.7 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 38.0, the RSI of WTI Crude Oil is at 23.2, and the RSI of Henry Hub Natural Gas is presently 64.0.
Click here to find out which 9 other oversold energy stocks you need to know about, at DividendChannel.com »
A bullish investor could look at PETD’s 28.7 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), PETD’s low point in its 52 week range is $ 15.08 per share, with $ 40.26 as the 52 week high point — that compares with a last trade of $ 27.45. Petroleum Development Corp. shares are currently trading off about 7.2% on the day.
According to the ETF Finder at ETF Channel, PETD makes up 3.91% of the S&P SmallCap Energy Portfolio ETF (NASD: PSCE)which is trading lower by about 2.7% on the day Tuesday.
See what other ETFs contain PETD »
See what other stocks are held by PSCE »
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