DPMLF Crosses Critical Technical Indicator

In trading on Wednesday, shares of Dundee Precious Metals Inc (DPMLF) entered into oversold territory, changing hands as low as $1.471 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 Dundee Precious Metals Inc, the RSI reading has hit 29.3 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 49.5, the RSI of Spot Gold is at 28.6, and the RSI of Spot Silver is presently 30.7.

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

A bullish investor could look at DPMLF's 29.3 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), DPMLF's low point in its 52 week range is $0.62 per share, with $3.13 as the 52 week high point — that compares with a last trade of $1.47. Dundee Precious Metals Inc shares are currently trading off about 3.1% on the day.

Dundee Precious Metals Inc 1 Year Performance Chart

More from Stocks

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes