X
<

How Precious Metals and Mining Stocks Are Performing

PART:
1 2 3 4 5
Part 5
How Precious Metals and Mining Stocks Are Performing PART 5 OF 5

A Brief Technical Analysis of the Miners in October 2017

Technical indicators

When considering mining stocks, investors should consider crucial indicators like RSI (relative strength index) levels and call implied volatility. Call implied volatility is used for measuring the fluctuations in the price of an asset given the fluctuations in the price of its call option.

RSI shows whether a stock has been overbought or oversold. If a stock’s RSI score is above 70, it may be overbought, leading the price to soon correct downward. If the stock’s RSI score is below 30, it could be oversold and may rapidly increase.

A Brief Technical Analysis of the Miners in October 2017

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

Receive e-mail alerts for new research on GDXJ

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.

In this final part of our series, we’ll compare New Gold (NGD), Newmont Mining (NEM), Sibanye Gold (SBGL), and Gold Fields (GFI).

The VanEck Vectors Junior Gold Miners (GDXJ) and the iShares MSCI Global Gold Min (RING) witnessed an upward streak in prices on Monday, October 9, increasing 1.1% and 0.99%, respectively.

Call implied volatility and RSI

On October 9, 2017, New Gold, Newmont, Sibanye, and Gold Fields had implied volatility readings of 51.3%, 25.9%, 63%, and 40.4%, respectively. Mining stock volatility is often higher than the volatility of the precious metals.

The above mining stocks’ RSI scores have recuperated recently. New Gold, Newmont, Sibanye, and Gold Fields now have RSI scores of 59, 51.9, 51.7, and 38.8, respectively. These RSI levels had recently risen after their considerable drop during the end of September.

X

Please select a profession that best describes you: