Equinox Gold shares become very oversold

IDuring Wednesday’s trading, shares of Equinox Gold Corp (ticker: EQX) entered oversold territory, changing hands as low as $6.05 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 Equinox Gold Corp, the RSI reached 25.3 – by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 39.9, Spot Gold’s RSI is at 37.7 and Spot Silver’s RSI is currently 29.2. A bullish investor might take EQX’s 25.3 reading as a sign that the recent selloff is running out of steam and starting to look for entry point opportunities on the buy side.

Looking at a one-year performance chart (below), EQX’s low point in its 52-week range is $5.47 per share, with $9.55 as its 52-week high – compare with a final trade of $6.10. Shares of Equinox Gold Corp are currently trading down around 15.4% on the day.

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