In trading on Tuesday, shares of Teekay Corp (TK - Get Report) entered into oversold territory, changing hands as low as $8.70 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 Teekay Corp, the RSI reading has hit 29.5 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 39.5, the RSI of WTI Crude Oil is at 21.9, the RSI of Henry Hub Natural Gas is presently 46.5, and the 3-2-1 Crack Spread RSI is 62.0. A bullish investor could look at TK's 29.5 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), TK's low point in its 52 week range is $5.45 per share, with $11.85 as the 52 week high point — that compares with a last trade of $8.77. Teekay Corp shares are currently trading down about 5.5% on the day.
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
Looking for an Undervalued Stock in a Solid Company? Give Whirlpool a Spin
Whirlpool has a decent long-term record, but remains a cyclical performer with nice trading opportunities for contrarian investors with longer-time horizons.
Jim Cramer Explains How Millennials Killed the Fossil Fuel Trade
Millennials are not interested in oil, and likely never will be. Jim Cramer explains what that means for the industry.
Jim Cramer: Big Tech in Washington Will Mean an EPS Hit
Breaking down the impact on Facebook, Alphabet and Amazon of congressional hearings.
Why Investors Interested in ESG Investing Should Consider This ETF
Looking to get into ESG investing? Or just looking to diversify your portfolio? Impact Shares CEO Ethan Powell explains why investors should consider the NAACP Minority Empowerment ETF.