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ATADF Crosses Critical Technical Indicator

In trading on Friday, shares of Atac Resources Ltd. entered into oversold territory, changing hands as low as $0.927 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 Atac Resources Ltd., the RSI reading has hit 27.9 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 44.5, the RSI of Spot Gold is at 30.8, and the RSI of Spot Silver is presently 31.7.

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

A bullish investor could look at ATADF's 27.9 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), ATADF's low point in its 52 week range is $0.89 per share, with $3.38 as the 52 week high point — that compares with a last trade of $0.927. Atac Resources Ltd. shares are currently trading off about 4.3% on the day.

Atac Resources Ltd. 1 Year Performance Chart