Oil prices are on the decline and experts are hinting that price may continue to fall. Next year, it may even fall below the $70 mark. The oil stocks are getting a lot of attention and here are updates on three of them in particular: FMC Technologies, Inc. (NYSE: FTI), Penn West Petroleum Ltd (USA) (NYSE:PWE) and Rex Energy Corporation (NASDAQ:REXX).
Oil companies are setting up for a hunkering down period and it may take longer than initially was thought, say industry experts. Prices are staying under pressure given lowering Chinese stock markets and the debt crisis in Greece. Three stocks to keep your eye on at the moment are Magnum Hunter Resources Corp (NYSE:MHR), Pacific Drilling SA (NYSE:PACD), and EXCO Resources Inc (NYSE:XCO).
Whether a stock is in oversold territory or not is determined by the Relative Strength Index or RSI. This measurement was created by J. Welles Wilder and is generally thought by investors to be a reliable way to measure the change of pricing and speed of such change. The range for RSI is between 0-100, with a value of 70 and over being said to be “oversold” stock. The “undersold” stock has a value of 30 or lower. In the oversold area right now are these three stocks: Franco-Nevada Corporation (NYSE:FNV), Net Element Inc (NSADAQ:CAZAU), and Colfax Corp (NYSE:CFX).
The buy signal for stocks can be figured out by the Relative Strength Index (RSI). This measurement compares a stock’s recent gains to its recent losses to determine if it is in oversold or overbought territory. Any trader would do well to understand the RSI, which ranges from zero to 100. When the RSI is 70 or higher, it is said to be overbought and many investors would say to pullback. For an RSI under 30, it is an indicator of being oversold and, thus, undervalued. Given the RSI, three stocks with buy signals are Vanguard Natural Resources, LLC (NASDAQ:VNR), Xcerra Corp (NASDAQ:XCRA), and MPLX LP (NYSE:MPLX).
The oil prices are up, as shown on Thursday, but the dollar is weaker and the there is little sign of thins changing. It was Wednesday when oil prices stabilized under the important $50 a barrel mark, which was the first time since April this even occurred. Here are oil stocks investors are best to pay attention to, at the moment. These three stocks are Eclipse Resources Corp (NYSE:ECR), Energy XXI Ltd (NASDAQ:EXXI), and Denbury Resources Inc. (NYSE:DNR).
Stocks with rising strength are ones that investors are choosing to sell heavily, as they view that these stocks will show weaknesses in the future. This type of investor is said to believe in the saying that “missed money is better than lost money” as the future may not necessarily hold such forecast weaknesses. The trader is acting in what he or she believes to be his or her best safety. Three stocks selling heavily at the moment and currently showing as strong are McDonald’s Corporation (NYSE:MCD), DIRECTV (NASDAQ:DTV), and Amazon.com, Inc. (NASDAQ:AMZN). Here is more about each stock, in detail, below.