RE:OversoldKL should be on the oversold list for this week.
--------------- Scince recent KL peak of CA $67.55 on Sept. 4th we have now dropped almost continually to CA $56.29. That's $11.26 or 16.7%.
Compare that to GDX recent peak on Sept 4th a very similar looking fall from US $30.95 to current $26.64. That's a drop of $4.31 or 13.9%.
GDXJ dropped from US 42.74 to US $36.26. Drop of $6.48 or 15.2%.
Spot gold Sept. 5th $1553.10 dropped to Sept. 13th $$1489.35. A drop of $63.75 or 4.1%
Usually most analysts say that gold mining shares have a 2%-3% leverage to the gold price. That would mean gold shares should have dropped between 8% and 12 % so I'd say yes we are definitly oversold.
If we consider KL somewhere between a major gold producer and a highly ranked junior we should see perhaps it should have dropped around 10% and is due for a price rise once the POG stops falling.
Add a possible intersest rate cut next Wed. and inclusion in the the S&P beginning on Sept. 23 then we have some catching up to do. Hopefully the POG is finished its correction now and we can see KL back above $60 CA next week and continue up from there. GLTAL