Shares of CIVI Now Oversold

In trading on Tuesday, shares of Civitas Resources Inc (Symbol: CIVI) entered into oversold territory, changing hands as low as $40.915 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 Civitas Resources Inc, the RSI reading has hit 28.0 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 47.1, the RSI of WTI Crude Oil is at 38.1, the RSI of Henry Hub Natural Gas is presently 57.8, and the 3-2-1 Crack Spread RSI is 68.5. A bullish investor could look at CIVI's 28.0 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), CIVI's low point in its 52 week range is $40.915 per share, with $78.63 as the 52 week high point — that compares with a last trade of $41.06. Civitas Resources Inc shares are currently trading down about 16.7% on the day.

Click here to find out which 9 other oversold energy stocks you need to know about »

Also see:

• Entertainment Dividend Stocks
• BLNK Insider Buying
• Institutional Holders of RFEU

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.