In Wednesday trading, shares of Newmont Corp. (symbol: NEM) entered oversold territory, hitting a low of $33.40 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. If the RSI reading falls below 30 then the stock is considered oversold.
In the case of Newmont Corp., the RSI reading has hit 29.9 – By comparison, the average RSI for metals and mining stocks covered by the Metals Channel is currently 45.7, Spot Gold’s RSI is 7.9, and Spot Silver’s RSI is currently 11.4. A bullish investor may view NEM’s 29.9 reading as a sign that the recent heavy selloff is in the process of ending, and begin looking for entry point opportunities on the buy side.
Looking at the chart of one year performance (below), NEM’s low point in the 52 week range is $33.08 per share, with the 52 week high point being $52.76 – which compares to the previous trade of $33.42. Shares of Newmont Corp are currently trading down about 0.7%.
See also:
• Top Ten Hedge Fund Holdings IVDA
• HCCI Market Cap History
• Institutional holders of EWL
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