Traders are watching EXCO Resources, Inc. (NYSE:XCO) intently as the stock has moved into “oversold” range with an RSI of 12.09. The stock reached $1.87 on a recent check.
The Relative Strength Index is a technical analysis oscillator which shows price strength when comparing and contrasting downward and upward movements. It can indicate oversold and overbought price levels for a given stock.
When looking at companies that are considered to be oversold, it is important to consider the moving averages of the security. We see here that the stock is -36.80% away from the 20-Day Simple Moving Average. Their 50-Day Simple Moving Average is a difference of -57.75% from current levels. Further back, their 200-Day Simple Moving Average is -82.07% difference from today’s price. Currently, the stock is -73.13% from its 50-Day High and -8.78% from the 50-day low.
Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 9.52% and month of 10.56%. So are analysts giving the Buy signal at this juncture? Sell-side firms currently have a consensus recommendation of 4.00 on the shares. This is based on a 1 to 5 formula where 1 indicates a Strong Buy and 5 a Strong Sell. Analysts are projecting the stock to trade at 7.50 within the next 12-18 months.