What Led to Rise in Precious Metal Miners on April 4?
Mining stocks fell
Precious metals have been steady as market participants wait for Trump’s meeting with Xi Jinping. In addition to studying the metals, it’s also important to study mining shares and their technicals to aid investors in their decision making. Precious metal mining stocks had witnessed a rebound in their prices due to the rise of the four precious metals.
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On a YTD (year-to-date) basis, Hecla Mining (HL), Kinross Gold (KGC), Eldorado Gold (EGO), and IAMGOLD (IAG) have risen 3.1%, 15.1%, 6.8%, and 9.4%, respectively. Consequently, the Global X Silver Miners Fund (SIL) also saw a year-to-date gain of 14.7%.
Among the four mining stocks mentioned above, all are trading above their 100-day moving averages and their 20-day moving averages except Hecla Mining, which is at a discount to its 100-day moving average. A substantial premium on a stock’s trading price suggests a potential fall in price, while a discount could indicate a rise in price.
The target prices of these four mining companies are significantly higher than their current prices, which suggests a positive outlook.
Low RSI levels
When an RSI (relative strength index) level is above 70, it indicates that a stock has been overbought and could fall. An RSI level below 30 indicates that a stock has been oversold and could rise. Mining companies’ RSI levels appear to be slowly rising. The RSI level for SIL is almost 60.5.