In trading on Thursday, shares of Dril-Quip Inc (Symbol: DRQ) entered into oversold territory, changing hands as low as $34.595 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 Dril-Quip Inc, the RSI reading has hit 29.2 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 41.8, the RSI of WTI Crude Oil is at 31.1, the RSI of Henry Hub Natural Gas is presently 56.0, and the 3-2-1 Crack Spread RSI is 47.7. A bullish investor could look at DRQ'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), DRQ's low point in its 52 week range is $34.595 per share, with $58.95 as the 52 week high point - that compares with a last trade of $35.01. Dril-Quip Inc shares are currently trading off about 4.9% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.