Copper Miners Getting Very Oversold

In trading on Tuesday, shares of the Copper Miners ETF ( COPX) entered into oversold territory, changing hands as low as $6.8701 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 Copper Miners, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 36.8.

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A bullish investor could look at COPX's 29.9 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), COPX's low point in its 52 week range is $6.01 per share, with $11.21 as the 52 week high point — that compares with a last trade of $6.88. Copper Miners shares are currently trading down about 1.3% on the day.

Copper Miners 1 Year Performance Chart

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