In trading on Friday, shares of TRX Gold Corp (Symbol: TRX) entered into oversold territory, changing hands as low as $0.961 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 TRX Gold Corp, the RSI reading has hit 29.1 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 41.7, the RSI of Spot Gold is at 6.2, and the RSI of Spot Silver is presently 10.9.
A bullish investor could look at TRX’s 29.1 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), TRX’s low point in its 52 week range is $0.3202 per share, with $2.80 as the 52 week high point — that compares with a last trade of $0.9653. TRX Gold Corp shares are currently trading down about 8% on the day.
Click here to find out what 9 other oversold metals stocks you need to know about »
Further TRX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com