In trading on Wednesday, shares of Northern Dynasty Minerals Ltd (NAK) entered into oversold territory, changing hands as low as $1.37 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 Northern Dynasty Minerals Ltd, the RSI reading has hit 29.8 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 50.8, the RSI of Spot Gold is at 60.4, and the RSI of Spot Silver is presently 65.2.

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

A bullish investor could look at NAK's 29.8 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), NAK's low point in its 52 week range is $0.28 per share, with $3.45 as the 52 week high point — that compares with a last trade of $1.50. Northern Dynasty Minerals Ltd shares are currently trading down about 9.5% on the day.

Northern Dynasty Minerals Ltd 1 Year Performance Chart

More from Stocks

Jim Cramer on What's Next for U.S.-China Trade Relations

Jim Cramer on What's Next for U.S.-China Trade Relations

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Lee Munson Discusses the Market and Areas of Opportunity for Investors

Lee Munson Discusses the Market and Areas of Opportunity for Investors

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts