MAG Silver Stock Getting Very Oversold

In trading on Wednesday, shares of MAG Silver Corp (MVG) entered into oversold territory, changing hands as low as $5.08 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 MAG Silver Corp, the RSI reading has hit 28.2 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 47.3, the RSI of Spot Gold is at 35.8, and the RSI of Spot Silver is presently 39.8.

START SLIDESHOW:
Click here to find out what 9 other oversold metals stocks you need to know about »

A bullish investor could look at MVG's 28.2 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), MVG's low point in its 52 week range is $5.00 per share, with $13.42 as the 52 week high point — that compares with a last trade of $5.10. MAG Silver Corp shares are currently trading down about 4.7% on the day.

MAG Silver Corp 1 Year Performance Chart

According to the ETF Finder at ETF Channel, MVG makes up 2.68% of the Silver Miners ETF ( SIL) which is trading lower by about 1.6% on the day Wednesday.

null

More from Stocks

Here Comes a Tesla Roadster and a New Stock Market Record: Week Ahead

Here Comes a Tesla Roadster and a New Stock Market Record: Week Ahead

Amazon Is Not Killing Every Retailer, Only These Laggards

Amazon Is Not Killing Every Retailer, Only These Laggards

Wall Street Still Thinks Tesla Could Soar to Elon Musk's $420 Target Price

Wall Street Still Thinks Tesla Could Soar to Elon Musk's $420 Target Price

Investors May Have Omarosa to Thank for Pretty Good Week

Investors May Have Omarosa to Thank for Pretty Good Week

Investing For Retirement: What Not to Worry About

Investing For Retirement: What Not to Worry About