In trading on Thursday, shares of El Paso Electric Company (Symbol: EE) entered into oversold territory, changing hands as low as $67.57 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 El Paso Electric Company, the RSI reading has hit 28.4 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 61.7, the RSI of WTI Crude Oil is at -1.0, the RSI of Henry Hub Natural Gas is presently -1.0, and the 3-2-1 Crack Spread RSI is -1.0. A bullish investor could look at EE's 28.4 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), EE's low point in its 52 week range is $61.74 per share, with $74.44 as the 52 week high point — that compares with a last trade of $67.66. El Paso Electric Company shares are currently trading down about 0.2% on the day.

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