In trading on Thursday, shares of Marathon Oil Corp. (NYSE: MRO) entered into overbought territory, changing hands as high as $31.28 per share. We define overbought 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 overbought if the RSI reading rises above 70.
In the case of Marathon Oil Corp., the RSI reading has hit 70.0 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 56.2, the RSI of WTI Crude Oil is at -1.0, and the RSI of Henry Hub Natural Gas is presently 37.8.
Click here to find out which 9 other overbought energy stocks you need to know about, on EnergyStockChannel.com »
Investors could look at MRO’s 70.0 reading as a sign that the recent heavy buying is peaking which could mean shares are due for a pullback.
Looking at a chart of one year performance (below), MRO’s low point in its 52 week range is $19.13 per share, with $34.97 as the 52 week high point — that compares with a last trade of $31.20. Marathon Oil Corp. shares are currently trading up about 0.4% on the day.
According to the ETF Finder at ETF Channel, MRO makes up 5.41% of the Dynamic Energy Exploration & Production Portfolio ETF (AMEX: PXE) which is trading lower by about 0.7% on the day Thursday.
See what other ETFs contain MRO »
See what other stocks are held by PXE »
MRO operates in the Oil & Gas Exploration & Production sector, among companies like Concho Resources Inc (NYSE: CXO) which is off about 0.5% today, and Pioneer Natural Resources Co (NYSE: PXD) trading up by about 1.6%. Below is a three month price history chart comparing the stock performance of MRO, versus CXO and PXD.
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