Shares of CALVF Now Oversold

In trading on Tuesday, shares of Caledonia Mining Corporation PLC (CALVF) entered into oversold territory, changing hands as low as $1.0546 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 Caledonia Mining Corporation PLC, 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 50.2, the RSI of Spot Gold is at 31.8, and the RSI of Spot Silver is presently 38.5.

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

A bullish investor could look at CALVF'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), CALVF's low point in its 52 week range is $0.48 per share, with $1.84 as the 52 week high point — that compares with a last trade of $1.06. Caledonia Mining Corporation PLC shares are currently trading down about 5.2% on the day.

Caledonia Mining Corporation PLC 1 Year Performance Chart

More from Stocks

Video: Here's How Global Stocks Can Boost Your Portfolio

Video: Here's How Global Stocks Can Boost Your Portfolio

Get to Know Stacey Cunningham, the NYSE's First Female Leader in 226 Years

Get to Know Stacey Cunningham, the NYSE's First Female Leader in 226 Years

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around