Mexco Energy Stock Getting Very Oversold

In trading on Tuesday, shares of Mexco Energy Corp. (MXC) entered into oversold territory, changing hands as low as $6.44 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 Mexco Energy Corp., the RSI reading has hit 29.4 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 40.3, the RSI of WTI Crude Oil is at 30.6, and the RSI of Henry Hub Natural Gas is presently 39.8.

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

A bullish investor could look at MXC's 29.4 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), MXC's low point in its 52 week range is $5.40 per share, with $11.14 as the 52 week high point — that compares with a last trade of $6.60. Mexco Energy Corp. shares are currently trading off about 5% on the day.

Mexco Energy Corp. 1 Year Performance Chart

More from Stocks

OPEC, Bank Stress Tests, Disney and Tesla - 5 Things You Must Know

OPEC, Bank Stress Tests, Disney and Tesla - 5 Things You Must Know

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

Novo Nordisk Stock Rises 4% Over 2 Sessions

Novo Nordisk Stock Rises 4% Over 2 Sessions

Stock Market Just Took Another Beating -- Here's What You Need to Know

Stock Market Just Took Another Beating -- Here's What You Need to Know

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers