Charles & Colvard Stock Getting Very Oversold

In trading on Tuesday, shares of Charles & Colvard Ltd (CTHR) entered into oversold territory, changing hands as low as $0.98 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 Charles & Colvard Ltd, the RSI reading has hit 29.5 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 48.0, the RSI of Spot Gold is at 40.4, and the RSI of Spot Silver is presently 48.7.

START SLIDESHOW:
Click here to find out what 9 other oversold dividend stocks you need to know about »

A bullish investor could look at CTHR's 29.5 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), CTHR's low point in its 52 week range is $0.75 per share, with $1.49 as the 52 week high point — that compares with a last trade of $1.02. Charles & Colvard Ltd shares are currently trading off about 3.8% on the day.

Charles & Colvard Ltd 1 Year Performance Chart

More from Stocks

Marriott CEO on Tax Cuts, Trade War Worries and China's Economy

Marriott CEO on Tax Cuts, Trade War Worries and China's Economy

50 Stocks Goldman Sachs Thinks Can Triumph Over Wage Inflation

50 Stocks Goldman Sachs Thinks Can Triumph Over Wage Inflation

Cloud and Defense Stocks Could Be Big Winners in a Trade War

Cloud and Defense Stocks Could Be Big Winners in a Trade War

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know