In trading on Thursday, shares of Walter Energy, Inc. (WLT) entered into oversold territory, changing hands as low as $7.71 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 29.3 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 50.6, the RSI of Spot Gold is at 51.0, and the RSI of Spot Silver is presently 45.4. A bullish investor could look at WLT'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), WLT's low point in its 52 week range is $7.71 per share, with $30.10 as the 52 week high point — that compares with a last trade of $7.75. Walter Energy, Inc. shares are currently trading off about 14.1% on the day. According to the ETF Finder at ETF Channel, WLT makes up 1.63% of the SPDR S&P Metals and Mining ETF ( XME) which is trading lower by about 0.5% on the day Thursday.
More from Stocks
Top 5 Stock Winners in the Dow Jones Industrial Average This Week
Here are the top 5 winning stocks in the Dow Jones Industrial Average from this week ending on Nov. 22.
Stocks End Higher as Trump Says Trade Deal with China 'Potentially Very Close'
Stocks finish higher Friday as President Donald Trump says a trade agreement between the U.S. and China, the world's two largest economies, is "potentially very close."
Stifel and UBS Both See Stocks Up 5% Next Year -- but the Estimates Differ
Stifel's Bannister likes cyclicals. UBS's team likes divs.