X
<

What Caused the Slump in Precious Metals and Miners?

PART:
1 2 3 4
Part 2
What Caused the Slump in Precious Metals and Miners? PART 2 OF 4

Analyzing the Miners’ Crucial Indicators in September

Readings of the mining shares

The changes in precious metals are often closely tracked by mining shares. When investors intend to enter mining shares, they need to analyze several key technical indicators.

We’ll look at two important technical indicators—volatility and RSI levels for miners Agnico Eagle (AEM), Barrick Gold (ABX), Hecla Mining (HL), and Kinross Gold (KGC).

Analyzing the Miners&#8217; Crucial Indicators in September

Interested in SGDM? Don't miss the next report.

Receive e-mail alerts for new research on SGDM

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Implied volatility

The call-implied volatility measures variations in the price of an asset when it comes to changes in the price of its call option.

On September 11, 2017, Agnico-Eagle Mines, Barrick Gold, Hecla Mining, and Kinross Gold had volatilities of 45.2%, 28.1%, 40.4%, and 39.8%, respectively. The volatility of the mining stocks is usually greater than the volatilities of precious metals.

RSI indicator

RSI (relative strength index) indicates whether a share has been overbought or oversold. If a stock’s RSI is greater than 70, it may be overbought and its price may fall. If a stock’s RSI is lower than 30, it could be oversold and could move upward.

The RSI levels for the miners mentioned above have recently witnessed revivals. Agnico-Eagle Mines, Barrick Gold, Hecla Mining, and Kinross Gold have RSI levels of 68.7, 59.4, 56.3, and 65.4, respectively.

Among the mining funds, the iShares MSCI Global Gold ETF (RING) and the Sprott Gold Miners ETF (SGDM) are also impacted by changes in precious metal prices. These two funds lost 3% and 3.1%, respectively, on September 11, 2017.

X

Please select a profession that best describes you: