In Wednesday trading, shares of Ryerson Holding Corp. (symbol: RYZ) entered oversold territory, changing hands as low as $20.50 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 Ryerson Holding Corp, the RSI reading has hit 29.9 – by comparison, the average RSI across the universe of metals and mining stocks covered by the Metals Channel is currently 39.1, Spot Gold’s RSI is at 10.1, and Spot Silver’s RSI is currently at 16.7. A bullish investor may view RYZ’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), RYZ’s low point in the 52-week range is $19.02 per share, with a 52-week high point of $30.90 – which compares to a previous trade of $20.84. Ryerson Holding Corp shares are currently trading down about 2.4%.
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