Analyzing Technical Indicators for Precious Metal Miners
Gold miners’ RSI levels
Traders and investors mainly use moving averages to make market entry or exit decisions. Usually, if a stock is trading below its 20-day moving average or 50-day moving average, it’s an indication that the stock is oversold, and vice versa.
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The above table shows the technical indicators for precious metal miners, including moving averages, returns, and 14-day RSI (relative strength index) levels. After being in the overbought territory at the beginning of September, the miners have pulled back. As you can see in the above table, all the miners are currently trading below the RSI level of 70, which is identified as the overbought level.
Tahoe Resources (TAHO), Coeur Mining (CDE), and Eldorado Gold (EGO) are inching closer to the upper level of 70. That could be due to a slight catch-up after their stock prices underperformed the sector year-to-date. Agnico Eagle Mines (AEM), Barrick Gold (ABX), Hecla Mining (HL), and Pan American Silver (PAAS), on the other hand, are bordering on the lower level of a 14-day RSI of 30.
While most of the miners are trading above their 50-day moving averages, they’ve fallen below the 20-day moving average level. The trend in the RSI level is also evident in the moving averages. Coeur Mining, Eldorado Gold, Iamgold (IAG), and New Gold (NGD) are trading at 9.4%, 8.5%, 9.6%, and 9.4%, respectively, above their 50-day moving averages.
Pullback and miners
The current pullback in gold prices (GLD) has taken miners down. Another up move in gold, and the miners could again inch toward the overbought level. Therefore, along with technicals, investors should look at the company-specific factors, which will drive the stocks in the long run.
For other updates on precious metal mining stocks, keep checking in with Market Realist’s Precious Metal Mining page.