New Gold (NGD) Drops 8.5%, Enters Oversold Territory; Time to Buy?

We recently published These 10 Stocks Fell Hard. Are You Holding Any? New Gold Inc. (NYSEAmerican:NGD) is one of this week’s top performers.

New Gold dropped its share prices by 8.51 percent week-on-week, officially entering the oversold territory amid the lack of fresh developments to boost buying appetite.

Friday’s session marked the company’s seventh day of decline since losing ground from the $5 level it last touched on July 7.

According to a recent report from Zacks Research, New Gold Inc. (NYSEAmerican:NGD) currently carries a relative strength index reading of 28.3, below the 30 threshold, indicating that it is now in oversold conditions, considering that the company is predicted to report better-than-expected earnings in the next quarter.

Based on its historical earnings reporting dates, New Gold Inc. (NYSEAmerican:NGD) is set to announce the results of its second quarter performance between this week or before the end of July.

“So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock to benefit from the inevitable rebound,” Zacks said.

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