Dominion Diamond Stock Getting Very Oversold

Apr 10 2014, 3:27pm CDT | by

In trading on Thursday, shares of Dominion Diamond Corp (NYSE: DDC) entered into oversold territory, changing hands as low as $13.11 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 Dominion Diamond Corp, the RSI reading has hit 27.2 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 48.5, the RSI of Spot Gold is at 51.5, and the RSI of Spot Silver is presently 39.9.

Click here to find out what 9 other oversold metals stocks you need to know about, at MetalsChannel.com »

A bullish investor could look at DDC’s 27.2 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), DDC’s low point in its 52 week range is $11.94 per share, with $16.78 as the 52 week high point — that compares with a last trade of $13.15. Dominion Diamond Corp shares are currently trading down about 2.4% on the day.


Special Offer: Find out how Dave Moenning is trading around the most recent insider transactions with a free 30 day trial and a special 20% off coupon from Forbes.
/>/>
 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Facebook M is a Hybrid Personal Digital Assistant inside Messenger
Facebook M is a Hybrid Personal Digital Assistant inside Messenger
M relies on artificial intelligence and human assistance.
 
 
iPhone Users get 30 Day Free Samsung Galaxy Trial
iPhone Users get 30 Day Free Samsung Galaxy Trial
Samsung tries everything to get new customers. Now iPhone user can test a new Galaxy smartphone 30 days for free.
 
 
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft's release schedule for Windows 10 updates is fast paced. The company released three updates within 2 weeks.
 
 
New Skinny Jeans for Women Charges and Hides iPhone
New Skinny Jeans for Women Charges and Hides iPhone
Joe's Jeans offers a Jeans for female mobile warriors. Meet the Joe's Jeans #Hello.