In Wednesday's trading, the shares of Laredo Petroleum, Inc (Symbol: LPI) entered oversold territory, changing hands as low as $ 6.86 per share. We define the overselling territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure the impulse on a scale of zero to 100. It is considered that an action is oversold if the reading of the RSI falls below of 30.
In the case of Laredo Petroleum, Inc, the reading of the RSI reached 29.1; in comparison, the universe of energy reserves covered by Energy Stock Channel currently has an average RSI of 47.9, the WSI Crude Oil RSI is at 53.7, the Henry Hub Natural Gas RSI is currently 63.5, and the 3-2 -1 Crack Spread RSI is 33.2. A bullish investor could consider reading 29.1 of LPI as a sign that recent strong selling is running out and start looking for entry-point opportunities on the buying side.
Looking at a one-year performance chart (below), the LPI low in its 52-week range is $ 6.85 per share, with $ 13.01 as the highest point of 52 weeks, which is compared to a last transaction of $ 6.87. The shares of Laredo Petroleum, Inc are currently trading around 4% on the day.
