In trading on Thursday, shares of L&L Energy Inc (LLEN) entered into oversold territory, changing hands as low as $1.11 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 L&L Energy Inc, the RSI reading has hit 24.5 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 56.3, the RSI of Spot Gold is at 55.5, and the RSI of Spot Silver is presently 58.5. A bullish investor could look at LLEN's 24.5 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), LLEN's low point in its 52 week range is $1.11 per share, with $4.94 as the 52 week high point — that compares with a last trade of $1.28. L&L Energy Inc shares are currently trading off about 37.6% on the day.
More from Stocks
Dow Futures Flat, Global Stocks Mixed; Brexit Talks, US Earnings Drive Sentiment
Global stocks traded mixed Wednesday, with modest gains in Asia offset by weaker U.S. equity futures, as investors eyed the final hours of Brexit negotiations between Britain and the EU while awaiting around round of third quarter earnings reports on Wall Street.
IBM Third-Quarter Revenue and Earnings Expected to Fall
Analysts polled by FactSet are expecting earnings of $2.66 per share on revenue of $18.2 billion.
Crown Castle International Expected to Earn 49 Cents a Share
Crown Castle International revenue expected to rise 7.5% to $1.5 billion.