In trading on Monday, shares of General Steel Holdings Inc (GSI) entered into oversold territory, changing hands as low as $0.8899 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 General Steel Holdings Inc, the RSI reading has hit 29.3 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 53.7, the RSI of Spot Gold is at 51.2, and the RSI of Spot Silver is presently 53.2. A bullish investor could look at GSI'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), GSI's low point in its 52 week range is $0.80 per share, with $1.39 as the 52 week high point — that compares with a last trade of $0.8945. General Steel Holdings Inc shares are currently trading off about 1.7% on the day.
More from Stocks
Market Wrap: GM Addresses New Offer Directly to Striking Workers
The autoworkers strike could cost GM up to $1.5 billion, according to a Credit Suisse note.
U.S.-China 'Mini Deal' Removes Key Distraction for Markets
The "mini-deal' announced Friday drew immidiate scorn, but it removes an important distraction for the markets ahead of earnings season.