Rhino Resource Partners (RNO) Shares Enter Oversold Territory

In trading on Friday, shares of Rhino Resource Partners LP ( RNO) entered into oversold territory, changing hands as low as $1.78 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 Rhino Resource Partners LP, the RSI reading has hit 27.6 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 45.1, the RSI of Spot Gold is at 45.2, and the RSI of Spot Silver is presently 50.3.

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

A bullish investor could look at RNO's 27.6 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), RNO's low point in its 52 week range is $1.77 per share, with $14.65 as the 52 week high point — that compares with a last trade of $1.79. Rhino Resource Partners LP shares are currently trading down about 3.8% on the day.

Rhino Resource Partners LP 1 Year Performance Chart

If you liked this article you might like

Renault-Nissan-Mitsubishi Will Launch 12 Zero Emission Vehicles By 2020

'VW2' looms over Daimler, Volvo and others

Iran, With Help From French Automakers, Is Poised to Modernize Its Auto Industry