LRR Energy Shares Enter Oversold Territory

In trading on Tuesday, shares of LRR Energy, L.P. (LRE) entered into oversold territory, changing hands as low as $14.80 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 LRR Energy, L.P., the RSI reading has hit 28.6 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 55.4, the RSI of WTI Crude Oil is at 60.0, and the RSI of Henry Hub Natural Gas is presently 40.6.

START SLIDESHOW:
Click here to find out which 9 other oversold energy stocks you need to know about »

A bullish investor could look at LRE's 28.6 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), LRE's low point in its 52 week range is $12.25 per share, with $20.08 as the 52 week high point — that compares with a last trade of $14.89. LRR Energy, L.P. shares are currently trading off about 2.5% on the day.

LRR Energy, L.P. 1 Year Performance Chart

null

More from Stocks

Stocks Rise as Bond Yields Inch Closer to 3% Threshold

Stocks Rise as Bond Yields Inch Closer to 3% Threshold

Should You Invest In DowDuPont Now?

Should You Invest In DowDuPont Now?

Newell Settles With Starboard, Adds 3 Directors While Keeping Icahn Happy Too

Newell Settles With Starboard, Adds 3 Directors While Keeping Icahn Happy Too

Should You Fear Earnings From Mega-Cap Tech Names Like Google and Microsoft?

Should You Fear Earnings From Mega-Cap Tech Names Like Google and Microsoft?

Why the Stock Market Won't Crash When 10-Year Yields Smash Through 3%

Why the Stock Market Won't Crash When 10-Year Yields Smash Through 3%