KNOP Stock Crowded With Sellers

By Energy Stock Channel Staff, Wednesday, November 30, 11:49 AM ET

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In trading on Wednesday, shares of KNOT Offshore Partners LP (NYSE:KNOP) entered into oversold territory, changing hands as low as $11.31 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 KNOT Offshore Partners LP, the RSI reading has hit 18.2 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 54.4, the RSI of WTI Crude Oil is at 43.6, the RSI of Henry Hub Natural Gas is presently 55.0, and the 3-2-1 Crack Spread RSI is 29.9.

A bullish investor could look at KNOP's 18.2 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), KNOP's low point in its 52 week range is $11.31 per share, with $18.85 as the 52 week high point — that compares with a last trade of $11.54. KNOT Offshore Partners LP shares are currently trading down about 17.8% on the day.

KNOT Offshore Partners LP 1 Year Performance Chart

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KNOP Stock Crowded With Sellers

KNOP Stock Crowded With Sellers | www.EnergyStockChannel.com