Sandstorm gold stock is getting heavily oversold
IDuring Tuesday’s trading, shares of Sandstorm Gold Ltd (ticker: SAND) entered oversold territory, changing hands for as little as $ 6.6199 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 Sandstorm Gold Ltd, the RSI reached 29.4 – in comparison, the universe of metals and mining stocks covered by the Metals Channel currently has an average RSI of 41.5, the RSI of Spot Gold is 52 , 4 and the RSI of Cash is currently 37.3. A bullish investor might take SAND’s 29.4 reading as a sign that the recent sell-off is running out and start looking for entry point opportunities from the buy side.
Looking at a one-year performance chart (below), SAND’s low point in its 52-week range is $ 5.96 per share, with $ 9.67 as the 52-week high, compared to a final transaction of $ 6.66. Shares of Sandstorm Gold Ltd are currently trading down around 2.1% on the day.
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