In trading on Wednesday, shares of 8Point3 Energy Partners LP (CAFD) entered into oversold territory, changing hands as low as $12.75 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 8Point3 Energy Partners LP, the RSI reading has hit 27.5 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 50.2, the RSI of WTI Crude Oil is at 57.2, the RSI of Henry Hub Natural Gas is presently 36.5, and the 3-2-1 Crack Spread RSI is 60.7. A bullish investor could look at CAFD's 27.5 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), CAFD's low point in its 52 week range is $12.04 per share, with $17.34 as the 52 week high point — that compares with a last trade of $12.76. 8Point3 Energy Partners LP shares are currently trading off about 4.1% on the day. According to the ETF Finder at ETF Channel, CAFD makes up 3.12% of the YieldCo Index ETF ( YLCO) which is trading lower by about 1.4% on the day Wednesday.
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
Alcoa Could Be Making a Bottom Pattern: How to Play the Stock
It's early in the process.
Micron's Big Earnings Beat: What Wall Street's Saying
Some analysts moved their estimates up, but most noted that oversupply continues to be an issue for the chipmaker.
How Investors Should Approach the Trade Talks, the Federal Reserve and Micron
United States Secretary of the Treasury Steven Mnuchin made comments on the trade talks early Wednesday. Mnuchin says that he believes that the U.S. and China were almost 90% of the way through trade talks. Fed chair Jerome Powell spoke about the need for the central bank to remain independent and to not cave to "short-term political interests." And, of course, we have Micron MU, which is Real Money's stock of the day and it also released earnings Tuesday after the bell. The company beat expectations.
Be Careful What You Wish for When Hoping the Fed Cuts Rates
It could be a few rate cuts would improve business sentiment, but watch out if the Fed needs to keep cutting.