PKD Crosses Critical Technical Indicator

In trading on Friday, shares of Parker Drilling Co. (PKD) entered into oversold territory, changing hands as low as $5.20 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 Parker Drilling Co., 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 46.7, the RSI of WTI Crude Oil is at 42.1, and the RSI of Henry Hub Natural Gas is presently 45.3.

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

A bullish investor could look at PKD'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), PKD's low point in its 52 week range is $5.20 per share, with $8.67 as the 52 week high point — that compares with a last trade of $5.20. Parker Drilling Co. shares are currently trading off about 6.1% on the day.

Parker Drilling Co. 1 Year Performance Chart

According to the ETF Finder at ETF Channel, PKD makes up 2.56% of the PowerShares Dynamic Oil & Gas Services Portfolio ETF ( PXJ) which is trading lower by about 1.4% on the day Friday.

More from Stocks

General Electric Expulsion From Dow Symbolizes Unsettled Week in Markets

General Electric Expulsion From Dow Symbolizes Unsettled Week in Markets

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Why Millennials Are Ditching Stocks for ETFs

Why Millennials Are Ditching Stocks for ETFs