The Metal Index has been selling off for a while now and has been one of the weakest sectors in the current market fall. But it looks like we are in the over-sold territory and could see a mean reversion take place in the metals
The above chart shows the RSI which is a momentum oscillator in the lower pane. The RSI is extremely low, around the levels of 25 or so on the weekly charts. In the past the index has found a short term bottom at these levels and then bounced up. We can see that happen in September of 2015 and again in the beginning of 2019.
Another indicator of the same is the long lower shadows of the candled that we are seeing along with the oversold levels in the momentum oscillator. Together they give some confidence that we may have a short term rally in the sector from these levels.
As the metal stocks were the biggest to fall in the current market fall, we could see some sharp rally coming in during the next couple of weeks if the broader markets do not show too much of a weakness. From a trading perspective one would do well to deep dive in the hourly charts and use the buying signals generated there to initiate a trade on the long side.