NextEra Energy Stock Getting Very Oversold
In trading on Wednesday, shares of NextEra Energy Inc (Symbol: NEE) entered into oversold territory, changing hands as low as $76.24 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 NextEra Energy Inc, 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 53.8, the RSI of WTI Crude Oil is at 60.0, the RSI of Henry Hub Natural Gas is presently 30.4, and the 3-2-1 Crack Spread RSI is 36.3. A bullish investor could look at NEE'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.
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