SHEL Stock Crowded With Sellers

In trading on Wednesday, shares of Shell plc (Symbol: SHEL) entered into oversold territory, changing hands as low as $61.085 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 Shell plc, the RSI reading has hit 28.6 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 40.6, the RSI of WTI Crude Oil is at 53.3, the RSI of Henry Hub Natural Gas is presently 60.9, and the 3-2-1 Crack Spread RSI is 78.2. A bullish investor could look at SHEL's 28.6 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), SHEL's low point in its 52 week range is $60.337 per share, with $74.605 as the 52 week high point — that compares with a last trade of $61.08. Shell plc shares are currently trading off about 1.2% on the day.

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Also see:

• ALDR Historical Stock Prices
• EAT YTD Return
• Top Ten Hedge Funds Holding SMED

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