In trading on Wednesday, shares of Mechel OAO (MTL) entered into oversold territory, changing hands as low as $0.9526 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 Mechel OAO, the RSI reading has hit 28.2 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 32.7, the RSI of Spot Gold is at 33.3, and the RSI of Spot Silver is presently 26.1. A bullish investor could look at MTL's 28.2 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), MTL's low point in its 52 week range is $0.42 per share, with $2.16 as the 52 week high point — that compares with a last trade of $1.00. Mechel OAO shares are currently trading off about 13% on the day. According to the ETF Finder at ETF Channel, MTL makes up 2.43% of the Russia Small-Cap ETF ( RSXJ) which is trading lower by about 3.1% on the day Wednesday.
More from Stocks
General Motors Jumps After UAW Reaches Tentative Deal to End Month-Long Strike
GM shares jumps Wednesday after the United Auto Workers union said it had reached a tentative agreement to end a month-long strike at the country's biggest carmaker.
Dow Wavers as Trade War Worries, Weak Retail Sales Overshadow Strong Earnings
Stocks waver as investors divide their attention among strong third-quarter earnings and concerns over weak U.S. retail sales and the ongoing U.S.-China trade war.