Polymet Mining Stock Getting Very Oversold

In trading on Tuesday, shares of Polymet Mining Corp ( PLM) entered into oversold territory, changing hands as low as $1.07 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 Polymet Mining Corp, the RSI reading has hit 29.6 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 52.6, the RSI of Spot Gold is at 49.3, and the RSI of Spot Silver is presently 49.7.

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

A bullish investor could look at PLM's 29.6 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), PLM's low point in its 52 week range is $0.97 per share, with $1.37 as the 52 week high point — that compares with a last trade of $1.09. Polymet Mining Corp shares are currently trading down about 6.8% on the day.

Polymet Mining Corp 1 Year Performance Chart

According to the ETF Finder at ETF Channel, PLM makes up 1.17% of the First Trust ISE Global Platinum Index Fund ETF ( PLTM) which is trading relatively unchanged on the day Tuesday.

If you liked this article you might like

4 Basic Materials Stocks Under $10 to Watch

4 Basic Materials Stocks Under $10 to Watch