Trade-Ideas: Energen (EGN) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Energen ( EGN) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Energen as such a stock due to the following factors:

  • EGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.4 million.
  • EGN has traded 549,511 shares today.
  • EGN is trading at 1.65 times the normal volume for the stock at this time of day.
  • EGN crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on EGN:

Energen Corporation is engaged in the development and exploration of oil, natural gas, and natural gas liquids in the continental United States. The stock currently has a dividend yield of 0.8%. EGN has a PE ratio of 50.8. Currently there are 8 analysts that rate Energen a buy, no analysts rate it a sell, and 4 rate it a hold.

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