Northern Dynasty Minerals Stock Getting Very Oversold

In trading on Friday, shares of Northern Dynasty Minerals Ltd (NAK) 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 Northern Dynasty Minerals Ltd, the RSI reading has hit 29.98 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 43.2, the RSI of Spot Gold is at 36.2, and the RSI of Spot Silver is presently 38.7.

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

A bullish investor could look at NAK's 29.98 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 $0.81 per share, with $2.42 as the 52 week high point — that compares with a last trade of $0.9862. Northern Dynasty Minerals Ltd shares are currently trading off about 5.2% on the day.

Northern Dynasty Minerals Ltd 1 Year Performance Chart

More from Stocks

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Fornite Funko Pop Toys Will Be Huge: CEO

Fornite Funko Pop Toys Will Be Huge: CEO

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Stocks End Close to Home

Stocks End Close to Home