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

Dow Rises as Stocks Claw Back Some Losses From Sharp Selloffs

Dow Rises as Stocks Claw Back Some Losses From Sharp Selloffs

AMD's Uptrend Is Still Alive (for Now)

AMD's Uptrend Is Still Alive (for Now)

Is Oracle Stock Actually Starting to Perform?

Is Oracle Stock Actually Starting to Perform?

Alphabet Can Be Bought as It Survives Third Dip Into Bear Market

Alphabet Can Be Bought as It Survives Third Dip Into Bear Market

Trading Strategies: Understanding the Markets Going Into 2019

Trading Strategies: Understanding the Markets Going Into 2019