In trading on Thursday, shares of Enable Midstream Partners L.P. (Symbol: ENBL) entered into oversold territory, changing hands as low as $14.41 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 Enable Midstream Partners L.P., the RSI reading has hit 27.8 – by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 45.3, the RSI of WTI Crude Oil is at 32.9, the RSI of Henry Hub Natural Gas is presently 46.0, and the 3-2-1 Crack Spread RSI is 46.9. A bullish investor could look at ENBL’s 27.8 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), ENBL’s low point in its 52 week range is $11.95 per share, with $17.36 as the 52 week high point – that compares with a last trade of $14.41. Enable Midstream Partners L.P. shares are currently trading down about 2.3% on the day. Enable Midstream Partners L.P. 1 Year Performance Chart According to the ETF Finder at ETF Channel, ENBL makes up 4.01% of the Zacks MLP High Income Index Shares ETF (Symbol: ZMLP) which is trading relatively unchanged on the day Thursday.

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

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

Source link