Alon USA Partners (ALDW) Shares Enter Oversold Territory

In trading on Tuesday, shares of Alon USA Partners LP (ALDW) entered into oversold territory, changing hands as low as $11.90 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 Alon USA Partners LP, the RSI reading has hit 29.5 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 50.5, the RSI of WTI Crude Oil is at 47.7, and the RSI of Henry Hub Natural Gas is presently 59.3.

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

A bullish investor could look at ALDW's 29.5 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), ALDW's low point in its 52 week range is $11.80 per share, with $29.12 as the 52 week high point — that compares with a last trade of $11.96. Alon USA Partners LP shares are currently trading down about 3.5% on the day.

Alon USA Partners LP 1 Year Performance Chart

According to the ETF Finder at ETF Channel, ALDW makes up 2.12% of the Dynamic Energy Exploration & Production Portfolio ETF ( PXE) which is trading lower by about 1.6% on the day Tuesday.

null

More from Stocks

18 Top Stocks Hedge Funds Own That Goldman Sachs Thinks Will Keep Outperforming

18 Top Stocks Hedge Funds Own That Goldman Sachs Thinks Will Keep Outperforming

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

One Chart on Global Trade Conditions Should Make You Worried About Stocks

One Chart on Global Trade Conditions Should Make You Worried About Stocks

Steel Stocks Are Monday's Biggest Losers From Cooling China Trade Tensions

Steel Stocks Are Monday's Biggest Losers From Cooling China Trade Tensions

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why