Nexa Resources (NEXA) Shares Enter Oversold Territory

Shutterstock photo

In trading on Thursday, shares of Nexa Resources SA (Symbol: NEXA) entered into oversold territory, changing hands as low as $10.92 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 Nexa Resources SA, the RSI reading has hit 28.8 - by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 54.6, the RSI of Spot Gold is at 69.3, and the RSI of Spot Silver is presently 70.2. A bullish investor could look at NEXA's 28.8 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), NEXA's low point in its 52 week range is $10.52 per share, with $21.61 as the 52 week high point - that compares with a last trade of $11.01. Nexa Resources SA shares are currently trading off about 1.7% on the day.

Nexa Resources SA 1 Year Performance Chart

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities
Referenced Symbols: NEXA

More from BNK Invest


BNK Invest

BNK Invest

Market News, Investing

Research Brokers before you trade

Want to trade FX?