Olympic Steel Stock Getting Very Oversold

In trading on Thursday, shares of Olympic Steel Inc. (ZEUS) entered into oversold territory, changing hands as low as $24.56 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 Olympic Steel Inc., 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 49.7, the RSI of Spot Gold is at 52.5, and the RSI of Spot Silver is presently 49.5.

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

A bullish investor could look at ZEUS'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), ZEUS's low point in its 52 week range is $16.61 per share, with $31.68 as the 52 week high point — that compares with a last trade of $25.50. Olympic Steel Inc. shares are currently trading off about 16.8% on the day.

Olympic Steel Inc. 1 Year Performance Chart

null

More from Stocks

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

What You Need to Know About Facebook and Europe's New Privacy Rules

What You Need to Know About Facebook and Europe's New Privacy Rules

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?