Are you looking for the best energy stocks to invest in? If so, you might want to consider the SM Energy Company (NYSE:$SM). Looking at the technical setup of a company can help traders decipher the direction that the stock is heading in, so today we are going to dive into these technical numbers in hopes of helping investors make smart decisions on the current trading forecast of SM Energy Company, one of the top independent oil and gas exploration companies in the world. If you’re new to the energy industry, or the stock market in general, know that technical charts are extremely beneficial to investors. Before we look into the numbers, let’s look at the role that these numbers play in making up a technical chart. If for example, an investor comes to a roadblock when picking the best energy stocks, the majority will decide to use esoteric trading machinery. This is a fine way of getting to the heart of the problem, just keep in mind that a technical chart is the best shortcut.
By using the technical chart, you will see that SM is in an extremely interesting position. First, the position is created by SM stock’s current day’s high of $18.63 as well as the day’s low of $17.54. As of right now, SM’s current day’s high means the stock is negatively positioned when put against their 52 weeks high of $43.09. Taking into consideration the range, investors can make the judgment that the day’s low depicts a 9.51% since 10/18/16. This essentially means something positive as it as it has a connection to SM latent upside potential and the opportunities that it can give to diligent traders.
It’s worth noting that it’s not just traders who are interested in SM’s stock. From the perspective of analysts, the SM stock paints a fascinating picture through their data. For instance, this data has produced a $33.55 for SM. Additionally, investors will look at other points of data in an attempt to point them in the direction that the stock is heading in. The SM beta, for instance, currently sits at 2.90, which means that the stock is heading in the direction of upside. In other words, SM’s current beta suggests that SM is more capricious than the sector to which it belongs.
In addition, two crucial technical indicators used by traders are as followed: A) the Relative strength indicator (RSI) and B) Stochastic. As of right now, SM’s 14-day RSI reading is 40.75%. What does this mean exactly? Well, it means that SM is neutral so the stock is rather stable and could possibly stay in it’s original position, moving neither up nor down. In regards to the stochastic reading, SM has a present reading of 17.51%, thus suggesting that the SM stock is oversold at present levels.
It doesn’t end there however, there are a couple more technical indicators that can help investors make even smarter choices on this stock. With a number of investors relying on SM’s -3.67, this reliance has allowed traders to make a judgment call that SM’s overall sentiment is negative.
Featured Image: Facebook
