The main US indices ended Friday’s session weaker, as US economic growth cooled to the slowest pace in three years in the first quarter and geopolitical concerns reemerged.
Contango Oil & Gas Company (:MCF) stock has moved in a downward direction this week, causing concern for some investors. Based on the recent close, the shares have dropped -9.37% over the past five trading days. Looking slightly further out, the stock is -55.46% year to date. With increased market volatility, stakeholders will likely be deciding whether or not now is a good time to cut losses or double down on the pullback.
Wall Street analysts are still seeing some upside to Contango Oil & Gas Company (:MCF) despite the recent move. Sell-side firms, on a consensus basis have a $7.93 price target on the name and a 2.30 recommendation, according to First Call. The recommendation is based on a 1 to 5 scale where 1 or 2 indicates a Buy recommendation, 3 a Hold and 4-5 a Sell.
In taking a look at technical levels,Contango Oil & Gas Company (:MCF) shares are trading -25.26% away from the 50 day simple moving average and -42.64% away from the 200 day simple moving average. Based on a recent bid, the stock is trading -65.28% away from it’s 52- week high and -2.35% away from its 52 week low.
After the recent decrease, investors may also look to see if the stock has entered oversold territory and could possibly ripe for a reversal.
Traditionally a stock is considered to be oversold when the Relative Strength Index moves below 30. As of writing, Contango Oil & Gas Company’s RSI stands at 29.48 . In looking at volatility levels, the shares saw weekly volatility of 5.44% and 5.20% over the past month.