Dominion Diamond Enters Oversold Territory - Time to Buy?

Forbes reported that shares of Dominion Diamond Corp. (NYSE:DDC) have sunk as low as $14.79 and have entered oversold territory. Stocks are considered oversold if they have a Relative Strength Index reading below 30, and Dominion’s is currently 29.4.

As quoted in the market news:

In the case of Dominion Diamond Corp, the RSI reading has hit 29.4 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 46.6, the RSI of Spot Gold is at 33.8, and the RSI of Spot Silver is presently 33.0.

A bullish investor could look at DDC’s 29.4 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.

Click here to read the full Forbes report.