Athabasca Oil Becomes Oversold (ATH)

May 12 2014, 11:24am CDT | by

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Monday, shares of Athabasca Oil Corp (Toronto: ATH) entered into oversold territory, hitting an RSI reading of 25.6, after changing hands as low as $7.12 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 56.4. A bullish investor could look at ATH’s 25.6 RSI reading today 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. The chart below shows the one year performance of ATH shares:

Click here to find out which 9 other oversold Canadian stocks you need to know about, at DividendChannel.com »

Looking at the chart above, ATH’s low point in its 52 week range is $5.47 per share, with $8.84 as the 52 week high point — that compares with a last trade of $7.19. Find out what 9 other oversold stocks you need to know about »


Special Offer: Follow Gordon Pape’s income investing tips with a 30 day FREE trial to The Income Investor newsletter
/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Whale tourism affecting marine animals' behaviour
London, Aug 27 (IANS) Boat trips to watch whales and dolphins may increasingly put the survival of marine mammals at risk, conservationists have warned.
 
 
OPEC daily basket closes higher
Vienna, Aug 27 (IANS/WAM) The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) stood at $99.82 a barrel Tuesday, compared to $99.09 Monday, according to the OPEC Secretariat.
 
 
Earth can sustain more terrestrial plant growth
Washington, Aug 27 (IANS) Our planet can produce much more land-plant biomass -- the total material in leaves, stems, roots, fruits, grains and other terrestrial plant parts -- than previously thought, says new research.
 
 
What brightens up the universe?
London, Aug 27 (IANS) Does ultraviolet light, that bathes the cosmos, come from numerous but faint galaxies or from a smaller number of quasars? The answer may not be too far in the future.
 
 
 

Latest from the Network

Islamic State 'committed war crimes', says UN probe
Geneva, Aug 27 (IANS) Islamic State (IS) militants have committed "mass atrocities" in Syria and recruited children as fighters, according to a UN probe, which has also accused the Damascus authorities of using...
Read more on Politics Balla
 
Uma Thurman is cryptic about Tarantino relationship
Uma Thurman has cryptically stated her relationship with Quentin Tarantino is ''pretty much what it's always been''. The 44-year-old actress has been romantically linked to the 51-year-old director since May this year...
Read more on Celebrity Balla
 
'Playful' Jon Hamm
Jon Hamm is ''very playful'' with his co-stars. The 43-year-old actor - who has been in a relationship with actress Jennifer Westfeldt for 17 years - stars as unemotional Don Draper in drama series 'Mad Men', but Lake...
Read more on Celebrity Balla
 
Lauren Conrad picks different bridesmaids dresses
Lauren Conrad has let each of her bridesmaids choose their own dress. The former 'Hills' star is marrying her musician fiancé William Tell later this year and has been busy the last few months planning their nuptials....
Read more on Celebrity Balla
 
China, Russia vow to enhance military ties
Beijing, Aug 27 (IANS) Top Chinese and Russian military officers Wednesday pledged to further enhance bilateral military ties. Fan Changlong, vice chairman of China's Central Military Commission (CMC), told Valery...
Read more on Politics Balla
 
China supports Pakistan's security, development: Li Keqiang
Beijing, Aug 27 (IANS) China supports Pakistan in its efforts to realise national security, stability, and economic development, Chinese Premier Li Keqiang said Wednesday. He also said China is ready to deepen...
Read more on Politics Balla
 
Raina's 100 takes India to 304/6
Cardiff, Aug 27 (IANS) A quickfire 75-ball 100 by Suresh Raina took India to a challenging 304 for six in 50 overs against England in the second ODI of the five-match cricket series at Sophia Gardens here Wednesday....
Read more on Sport Balla
 
Mike Epps to play Richard Pryor in biopic
Mike Epps will play comedian Richard Pryor in a forthcoming biopic of the US comedian. The news has been confirmed on Twitter by Oscar-nominated director Lee Daniels, who posted a picture of himself with Epps - a stand-...
Read more on Movie Balla
 
John Moore to direct new thriller IT
John Moore has been given the job of directing the new Pierce Brosnan thriller 'IT'. The director, who has previously worked on Hollywood blockbuster films like 'A Good Day to Die Hard', has become the latest name to be...
Read more on Movie Balla
 
Al-Maliki criticises US vice president over federalism
Baghdad, Aug 27 (IANS) Iraq's outgoing Prime Minister Nuri al-Maliki Wednesday criticised US Vice President Joe Biden for promoting the idea of a federal system in sharply divided Iraq and warned that the US plan may...
Read more on Politics Balla