Shares Of SFL Now Oversold

In trading on Monday, shares of Ship Finance International Ltd ( SFL) entered into oversold territory, changing hands as low as $14.12 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 Ship Finance International Ltd, the RSI reading has hit 26.2 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 38.1, the RSI of WTI Crude Oil is at 41.0, and the RSI of Henry Hub Natural Gas is presently 42.8.

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

A bullish investor could look at SFL's 26.2 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), SFL's low point in its 52 week range is $13.85 per share, with $17.98 as the 52 week high point — that compares with a last trade of $14.31. Ship Finance International Ltd shares are currently trading down about 5.4% on the day.

Ship Finance International Ltd 1 Year Performance Chart

According to the ETF Finder at ETF Channel, SFL makes up 3.91% of the Guggenheim Shipping ETF ( SEA) which is trading lower by about 2.9% on the day Monday.


If you liked this article you might like

Seadrill Secures New Cash as Part of Chapter 11 Filing

One Reason Why Ship Finance (SFL) Stock Is Continuing to Slump Today

3 Hold-Rated Dividend Stocks: SFL, MPLX, CF

'Mad Money' Lightning Round: Take Allergan Over Teva

Jim Cramer's 'Mad Money' Recap: Was This a Bad Market Day? I'll Take It!