Markets

ABX Stock Crowded With Sellers

In trading on Wednesday, shares of Barrick Gold Corp. (Symbol: ABX) entered into oversold territory, changing hands as low as $11.64 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 Barrick Gold Corp., the RSI reading has hit 29.7 - by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 45.7, the RSI of Spot Gold is at 52.4, and the RSI of Spot Silver is presently 52.5. A bullish investor could look at ABX's 29.7 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), ABX's low point in its 52 week range is $11.07 per share, with $20.365 as the 52 week high point - that compares with a last trade of $11.69. Barrick Gold Corp. shares are currently trading down about 1.4% on the day.

Barrick Gold Corp. 1 Year Performance Chart

According to the ETF Finder at ETF Channel, ABX makes up 7.14% of the PowerShares Global Gold and Precious Metals Portfolio ETF (Symbol: PSAU) which is trading lower by about 2.7% on the day Wednesday.

Click here to find out what 9 other oversold dividend 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.


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

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