The energy market is replete with opportunity for investors seeking undervalued companies. In particular, stocks in the energy sector have recently become oversold, holding potential for a lucrative entry point.
One main indicator, the Relative Strength Index (RSI), has signaled the potential for stocks to rebound. When a stock’s RSI falls below 30, the asset is often considered oversold, setting the stage for a potential upswing. Keeping an eye on the RSI of energy stocks can provide traders with valuable insight for the short term.
Here’s a roundup of major energy stocks with near or below 30 RSI values and potential for growth.
The Potential of San Juan Basin Royalty Trust (SJT)
- Recently, on Sept. 7, San Juan Basin Royalty Trust reached a settlement agreement with Hilcorp, solidifying a positive development for the company. Despite this, the stock has experienced a significant drop of around 25% over the past month, reaching a 52-week low of $4.93.
- RSI Value: 28.71
- SJT Price Action: The shares of San Juan Basin Royalty Trust gained 2% to close at $5.13 on Thursday.
Hallador Energy Company: Searching for the Rebound (HNRG)
- Following downbeat quarterly earnings reported on Nov. 6, Hallador Energy Company has experienced a significant stock decline of around 28% over the past month, reaching a 52-week low of $6.87. However, it’s important to note that high coal sales prices have supported revenue growth, even amidst operational challenges.
- RSI Value: 22.44
- HNRG Price Action: The shares of Hallador Energy fell 0.6% to close at $8.95 on Thursday.
Insights into Permianville Royalty Trust (PVL)
- On Dec. 18, Permianville Royalty Trust released its monthly operational update. Despite this positive disclosure, the company’s stock has dropped by around 25% over the past month, reaching a 52-week low of $1.46.
- RSI Value: 27.98
- PVL Price Action: The shares of Permianville Royalty Trust fell 1.4% to close at $1.46 on Thursday.
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