USAP Crosses Critical Technical Indicator

In trading on Wednesday, shares of Universal Stainless & Alloy Products, Inc. (USAP) entered into oversold territory, changing hands as low as $24.01 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 Universal Stainless & Alloy Products, Inc., the RSI reading has hit 27.5 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 41.1, the RSI of Spot Gold is at 52.8, and the RSI of Spot Silver is presently 36.9.

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

A bullish investor could look at USAP's 27.5 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), USAP's low point in its 52 week range is $23.60 per share, with $38.88 as the 52 week high point — that compares with a last trade of $24.35. Universal Stainless & Alloy Products, Inc. shares are currently trading off about 2.6% on the day.

Universal Stainless & Alloy Products, Inc. 1 Year Performance Chart

More from Stocks

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts