Probe Mines Stock Getting Very Oversold

In trading on Wednesday, shares of Probe Mines Ltd ( PROBF) entered into oversold territory, changing hands as low as $1.7118 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 Probe Mines Ltd, the RSI reading has hit 28.0 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 39.7, the RSI of Spot Gold is at 24.0, and the RSI of Spot Silver is presently 19.7.

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

A bullish investor could look at PROBF's 28.0 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), PROBF's low point in its 52 week range is $1.7118 per share, with $3.54 as the 52 week high point — that compares with a last trade of $1.75. Probe Mines Ltd shares are currently trading off about 5.1% on the day.

Probe Mines Ltd 1 Year Performance Chart