North American Energy Partners Becomes Oversold (NOA)

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Thursday, shares of North American Energy Partners Inc. ( NOA) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $5.45 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 54.9. A bullish investor could look at NOA's 29.2 RSI reading today 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. The chart below shows the one year performance of NOA shares:

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

North American Energy Partners Inc. 1 Year Performance Chart

Looking at the chart above, NOA's low point in its 52 week range is $3.20 per share, with $6.22 as the 52 week high point — that compares with a last trade of $5.51.

null

If you liked this article you might like

3 Energy Stocks Pushing Industry Growth

3 Energy Stocks Pushing Industry Growth

3 Energy Stocks Nudging The Industry Higher

3 Energy Stocks Nudging The Industry Higher

Are these 6 dividend stocks under 10 dollars undervalued?

Are these 6 dividend stocks under 10 dollars undervalued?

Deal or No Deal: 4 Undervalued Dividend Stocks Under 10 Dollars

Deal or No Deal: 4 Undervalued Dividend Stocks Under 10 Dollars

North American Energy Partners' CEO Discusses F1Q13 Results - Earnings Call Transcript

North American Energy Partners' CEO Discusses F1Q13 Results - Earnings Call Transcript