In trading on Tuesday, shares of Bill Barrett Corp (BBG) entered into oversold territory, changing hands as low as $6.42 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 Bill Barrett Corp, the RSI reading has hit 29.1 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 35.2, the RSI of WTI Crude Oil is at 26.7, and the RSI of Henry Hub Natural Gas is presently 42.0. A bullish investor could look at BBG's 29.1 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), BBG's low point in its 52 week range is $6.42 per share, with $26.95 as the 52 week high point — that compares with a last trade of $6.55. Bill Barrett Corp shares are currently trading off about 6.2% on the day. According to the ETF Finder at ETF Channel, BBG makes up 1.11% of the SPDR S&P Oil & Gas Exploration & Production ETF ( XOP) which is trading relatively unchanged on the day Tuesday.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Dow Futures Edge Higher As Markets Look to FAANG Earnings to Extend Record Rally
U.S. equity futures edged higher, potentially lifting Wall Street to fresh record peaks again Wednesday, as investors await the first of six major tech sector earnings reports later today that could make-or-break the recent stock market rally.
Replay:Jim Cramer Explains What You Should Watch When Banks Report Earnings
Jim Cramer weighs in on JPMorgan Chase's earnings, the stocks that he's got his eye on and what he's watching closely in the markets.
Google Exec: No Plans to Enter Chinese Search Market
Google confirmed that it ended a project aimed at introducing a censored search engine in China during a day of multiple Congressional hearings focused on the influence of Big Tech.