LEU Signals Potential Reversal as RSI Hits Oversold Levels

Monday’s trading session saw Centrus Energy Corp (LEU) hit $230.66, marking a notable downturn of approximately 5.3% on the day. More importantly, the stock’s technical metrics are now flashing what many traders consider a bullish signal.

The Relative Strength Index—a momentum gauge that ranges from 0 to 100—dropped to 29.0 for LEU. This reading is significant because it sits below the 30 threshold, which technically defines oversold conditions. To put this in perspective: the broader metals and mining sector averages an RSI of 55.4, Spot Gold is trading with an RSI of 8.2, and Spot Silver shows 18.9. LEU’s 29.0 reading stands out as particularly compressed.

What does this mean for traders? Oversold conditions often attract contrarian buyers who interpret heavy selling as exhaustion rather than the beginning of further declines. When an asset reaches these extreme momentum levels, it can represent a potential inflection point where accumulated selling pressure finally runs out of steam.

Looking at LEU’s one-year performance chart reveals the bigger picture. The stock’s 52-week low sits at $49.40, while the 52-week high reached $464.25. The current price of $236.97 reflects substantial volatility within this range. This context matters because it shows where the stock has traveled and how current levels compare to the recent ceiling.

For traders monitoring this technical setup, LEU’s oversold RSI combined with its current positioning within the annual range presents a framework worth watching. The combination of extreme momentum readings and historical price context can help traders evaluate whether recent weakness represents opportunity or merely consolidation before further declines.