SIL Crowded With Sellers

In trading on Wednesday, shares of the Silver Miners ETF ( SIL) entered into oversold territory, changing hands as low as $12.05 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 Silver Miners, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 63.6.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at SIL's 29.3 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), SIL's low point in its 52 week range is $10.54 per share, with $25.40 as the 52 week high point — that compares with a last trade of $12.10. Silver Miners shares are currently trading down about 1.6% on the day.

Silver Miners 1 Year Performance Chart
Three Months Free, a $100 Value, Just Submit Your Top Stock Pick! (Offer ends 11/10/2013)
null

If you liked this article you might like

Silver Stocks Are Ready to Generate Out-of-This-World Performance

Gold, Silver and Metal-Mining Stocks That Outshine the Rest

Trader's Notebook: Gold and Silver Set to Get Insense

Trader's Notebook: Gold and Silver Set to Get Insense

The Trader Daily: Reviewing Last Month's Winners and Losers

The Trader Daily: Reviewing Last Month's Winners and Losers

Bull Charts of the Day: Playing the Gold and Silver Miners Through ETFs