IOn Wednesday trading, shares of First Majestic Silver Corp (ticker: AG) entered oversold territory, changing hands for as little as $ 14.645 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 oversold if the RSI reading falls below 30.
In the case of First Majestic Silver Corp, the RSI reached 28.7 – in comparison, the universe of metals and mining stocks covered by the Metals Channel currently has an average RSI of 43.5, the RSI of Spot Gold is 41.7 and Spot Silver’s RSI is currently 40.4. A bullish investor might take the AG 28.7 reading as a sign that the recent sell-off is running out and start looking for entry point opportunities on the long side.
Looking at a one-year performance chart (below), AG’s low point in its 52-week range is $ 9.33 per share, with $ 24 as the 52-week high – which compares to a last transaction of $ 14.71. Shares of First Majestic Silver Corp are currently trading at around 3.8% on that day.
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