Shares of GLDX Now Oversold

In trading on Thursday, shares of the Gold Explorers ETF ( GLDX) entered into oversold territory, changing hands as low as $14.349 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 Gold Explorers, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 58.8.

Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at GLDX's 29.7 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), GLDX's low point in its 52 week range is $10.29 per share, with $17.56 as the 52 week high point — that compares with a last trade of $14.35. Gold Explorers shares are currently trading off about 3.6% on the day.

Gold Explorers 1 Year Performance Chart

If you liked this article you might like

Gold, Silver and Metal-Mining Stocks That Outshine the Rest

Small Gold, Silver Miners Still Shining Brightly

Dion's Friday ETF Winners and Losers

Dion's Thursday ETF Winners and Losers

Dion's Thursday ETF Winners and Losers

Dion's Weekly ETF Blog Wrap

Dion's Weekly ETF Blog Wrap