Centerra Gold Stocks Become Very Oversold

IDuring Friday’s trading, shares of Centerra Gold Inc (Symbol: CGAU) entered oversold territory, changing hands as low as $6 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 Centerra Gold Inc, the RSI reading reached 29.9 – in comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 41.3, Spot Gold’s RSI is at 24.7 and Spot Silver’s RSI is currently 26.0. A bullish investor might take CGAU’s 29.9 reading as a sign that the recent selloff is running out, and start looking for entry point opportunities on the buy side.

Looking at a one-year performance chart (below), CGAU’s low point in its 52-week range is $5.9721 per share, with $10.57 as its 52-week high – compare with a final transaction of $6.00. Shares of Centerra Gold Inc are currently trading around 5.4% higher on the day.

Click here to find out what 9 other oversold dividend stocks you need to know »

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