In trading on Friday, shares of Chevron entered into oversold territory, changing hands as low as $145.67 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.

Start slideshow: 10 Oversold Energy Stocks »

In the case of Chevron Corporation, the RSI reading has hit 24.7 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 43.3, the RSI of WTI Crude Oil is at 44.1, the RSI of Henry Hub Natural Gas is presently 63.6, and the 3-2-1 Crack Spread RSI is 46.8.

A bullish investor could look at CVX’s 24.7 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), CVX’s low point in its 52 week range is $145.67 per share, with $189.68 as the 52 week high point — that compares with a last trade of $146.34. Chevron Corporation shares are currently trading down about 5.4% on the day.

The CVX RSI information above was sourced from TechnicalAnalysisChannel.com

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