Paramount Gold & Silver Stock Getting Very Oversold

In trading on Monday, shares of Paramount Gold & Silver Corp (PZG) entered into oversold territory, changing hands as low as $1.49 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 Paramount Gold & Silver Corp, the RSI reading has hit 23.5 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 34.8, the RSI of Spot Gold is at 17.4, and the RSI of Spot Silver is presently 17.2.

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A bullish investor could look at PZG's 23.5 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), PZG's low point in its 52 week range is $1.49 per share, with $2.82 as the 52 week high point — that compares with a last trade of $1.55. Paramount Gold & Silver Corp shares are currently trading down about 18.1% on the day.

Paramount Gold & Silver Corp 1 Year Performance Chart

According to the ETF Finder at ETF Channel, PZG makes up 5.33% of the Gold Explorers ETF (GLDX) which is trading lower by about 12.5% on the day Monday.

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