In trading on Wednesday, shares of the VanEck Rare Earth/Strategic Metals ETF (Symbol: REMX) entered into oversold territory, changing hands as low as $77.85 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 VanEck Rare Earth/Strategic Metals, the RSI reading has hit 29.98 — by comparison, the RSI reading for the S&P 500 is currently 52.6.
A bullish investor could look at REMX’s 29.98 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), REMX’s low point in its 52 week range is $41.39 per share, with $111.55 as the 52 week high point — that compares with a last trade of $79.66. VanEck Rare Earth/Strategic Metals shares are currently trading off about 2% on the day.
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Further REMX Research:
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