In trading on Monday, shares of Schnitzer Steel Industries Inc (SCHN - Get Report) entered into oversold territory, changing hands as low as $22.60 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 Schnitzer Steel Industries Inc, the RSI reading has hit 29.9 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 54.4, the RSI of Spot Gold is at 65.0, and the RSI of Spot Silver is presently 57.7. A bullish investor could look at SCHN'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), SCHN's low point in its 52 week range is $12.09 per share, with $30.60 as the 52 week high point — that compares with a last trade of $22.80. Schnitzer Steel Industries Inc shares are currently trading off about 0.2% on the day. According to the ETF Finder at ETF Channel, SCHN makes up 1.72% of the PowerShares DWA Basic Materials Momentum Portfolio ETF ( PYZ) which is trading relatively unchanged on the day Monday.
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