ETF Channel Staff - Monday, October 2, 10:51 AMIn trading on Monday, shares of the Gold Miners ETF (GDX) entered into oversold territory, changing hands as low as $26.11 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 Gold Miners, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 37.2.
A bullish investor could look at GDX's 29.7 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), GDX's low point in its 52 week range is $22.49 per share, with $36.255 as the 52 week high point — that compares with a last trade of $26.15. Gold Miners shares are currently trading off about 3% on the day.
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Buy (2.95 out of 4) 100th percentile
(ranked higher than approx. 100% of all etfs covered)
Based on data provided by Zacks Investment Research via Quandl.com |
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