XES Crowded With Sellers

In trading on Wednesday, shares of the SPDR S&P Oil & Gas Equipment & Services ETF ( XES) entered into oversold territory, changing hands as low as $42.75 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 SPDR S&P Oil & Gas Equipment & Services, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 49.4.

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

A bullish investor could look at XES's 29.2 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), XES's low point in its 52 week range is $39.54 per share, with $49.63 as the 52 week high point — that compares with a last trade of $42.88. SPDR S&P Oil & Gas Equipment & Services shares are currently trading down about 0.7% on the day.

SPDR S&P Oil & Gas Equipment & Services 1 Year Performance Chart

If you liked this article you might like

Profit From Energy's Worsening Imbalance With This One Bearish Move

Oil Service Stocks Fall After First Rig Decline in More Than 2 Months

These 5 Oil Stocks Will Take Off in 2017

Time to Short This ETF, While Wall Street Hits the Fainting Couch