Walter Energy (WLT) Shares Enter Oversold Territory

In trading on Friday, shares of Walter Energy, Inc. (WLT) entered into oversold territory, changing hands as low as $11.58 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 Walter Energy, Inc., the RSI reading has hit 27.4 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 53.9, the RSI of Spot Gold is at 60.2, and the RSI of Spot Silver is presently 52.8.

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

A bullish investor could look at WLT's 27.4 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), WLT's low point in its 52 week range is $9.88 per share, with $40.60 as the 52 week high point — that compares with a last trade of $11.62. Walter Energy, Inc. shares are currently trading off about 7% on the day.

Walter Energy, Inc. 1 Year Performance Chart

According to the ETF Finder at ETF Channel, WLT makes up 2.47% of the SPDR S&P Metals and Mining ETF ( XME) which is trading lower by about 3.4% on the day Friday.

More from Stocks

Cigarette Stocks Have Been Smoked This Week -- Here's a Top Trade

Cigarette Stocks Have Been Smoked This Week -- Here's a Top Trade

What Do Trade Wars Mean for High Yield Bond Investors?

What Do Trade Wars Mean for High Yield Bond Investors?

Is General Electric Now a Growth Stock?

Is General Electric Now a Growth Stock?

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

Here's Why General Electric's Stock Isn't Falling Off a Cliff After Earnings

Here's Why General Electric's Stock Isn't Falling Off a Cliff After Earnings