In trading on Thursday, shares of the Gold Miners ETF (Symbol: GDX) entered into oversold territory, changing hands as low as $29.53 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 Gold Miners, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 65.8. A bullish investor could look at GDX's 28.9 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), GDX's low point in its 52 week range is $21.52 per share, with $36.255 as the 52 week high point — that compares with a last trade of $29.59. Gold Miners shares are currently trading off about 1.4% on the day.

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