In trading on Friday, shares of Orla Mining Ltd (Symbol: ORLA) entered into oversold territory, changing hands as low as $12 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. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Orla Mining Ltd, the RSI reading has hit 28.8 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 46.4, the RSI of Spot Gold is at 5.7, and the RSI of Spot Silver is presently 15.4.
A bullish investor could look at ORLA’s 28.8 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), ORLA’s low point in its 52 week range is $9.16 per share, with $21.98 as the 52 week high point — that compares with a last trade of $12.03. Orla Mining Ltd shares are currently trading down about 2.1% on the day.
Click here to find out what 9 other oversold metals stocks you need to know about »
Also see:
Canadian Stocks Going Ex-Dividend
GLTC Insider Buying
Dividend Stocks Crossing Above Their 200 DMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial, investment, or legal advice. Stock markets, real estate, and other financial instruments involve significant risks, and past performance does not guarantee future results. You should conduct your own research and/or seek advice from a licensed financial advisor before making any investment decisions. The website owner is not liable for any financial losses or damages arising from the use of the information presented here.
About The Author
