XME Crowded With Sellers

In trading on Monday, shares of the SPDR S&P Metals & Mining ETF (Symbol: XME) entered into oversold territory, changing hands as low as $61.04 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 SPDR S&P Metals & Mining, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 63.4. A bullish investor could look at XME's 29.8 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), XME's low point in its 52 week range is $53.38 per share, with $70.49 as the 52 week high point — that compares with a last trade of $61.09. SPDR S&P Metals & Mining shares are currently trading down about 1.6% on the day.

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Also see:

• Dividend History
• TWFG Average Annual Return
• DMAC Stock Predictions

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