Pinnacle West Capital (PNW) Shares Enter Oversold Territory

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In trading on Monday, shares of Pinnacle West Capital Corp (Symbol: PNW) entered into oversold territory, changing hands as low as $79.40 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 Pinnacle West Capital Corp, the RSI reading has hit 29.5 – by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 51.7, the RSI of WTI Crude Oil is at 68.7, the RSI of Henry Hub Natural Gas is presently 71.9, and the 3-2-1 Crack Spread RSI is 55.7. A bullish investor could look at PNW’s 29.5 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), PNW’s low point in its 52 week range is $75.79 per share, with $92.48 as the 52 week high point – that compares with a last trade of $79.55. Pinnacle West Capital Corp shares are currently trading off about 1.7% on the day.

Pinnacle West Capital Corp 1 Year Performance Chart According to the ETF Finder at ETF Channel, PNW makes up 4.19% of the Uranium+Nuclear Energy ETF (Symbol: NLR) which is trading lower by about 1% on the day Monday.

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.

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