Pyramid Oil (PDO) Shares Enter Oversold Territory

In trading on Friday, shares of Pyramid Oil Co. (PDO) entered into oversold territory, changing hands as low as $5.15 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 Pyramid Oil Co., the RSI reading has hit 28.1 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 57.7, the RSI of WTI Crude Oil is at 44.3, and the RSI of Henry Hub Natural Gas is presently 53.2.

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

A bullish investor could look at PDO's 28.1 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), PDO's low point in its 52 week range is $3.77 per share, with $7.15 as the 52 week high point — that compares with a last trade of $5.23. Pyramid Oil Co. shares are currently trading off about 3.1% on the day.

Pyramid Oil Co. 1 Year Performance Chart

More from Stocks

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries

Warren Buffett at Age 87 Still Does One Amazing Thing That Drives Success

Warren Buffett at Age 87 Still Does One Amazing Thing That Drives Success

Amazon, Nvidia, Micron and 10 Other Stocks to Own in June

Amazon, Nvidia, Micron and 10 Other Stocks to Own in June

3 Great Stocks for Retirees to Own

3 Great Stocks for Retirees to Own