How Global Indicators Are Affecting Precious Metals

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How Global Indicators Are Affecting Precious Metals PART 1 OF 4

How Did Mining Stocks’ Technicals Look on October 10?

Mining stocks rebounded

Precious metal mining companies saw a mixed day on Tuesday, October 10, 2017, as precious metals climbed. Usually, miners move with precious metals. However, that’s not always the case, as we saw on Tuesday.

In this part of the series, we’ll look at the moving averages of miners and their movements during the last month. We’ll look at silver-based miners Eldorado Gold (EGO), Alacer Gold (ASR), IAMGOLD (IAG), and Harmony Gold (HMY).

How Did Mining Stocks&#8217; Technicals Look on October 10?

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On a YTD (year-to-date) basis, Eldorado and Hecla have losses of 29.5% and 14%, respectively, while Alacer and IAMGOLD have YTD gains of 0.89% and 60.5%, respectively. The gold-based VanEck Vectors Junior Gold Miners (GDXJ) has a YTD rise of 9.4%.

Technical details

All four silver miners except Eldorado are trading below their 100-day moving averages. Moving averages are such that if miners are trading at a considerably higher premium over their short and long-term moving averages, they may soon see a downward revision in price. And if they trade at a good discount, the price may correct upward.

All the four miners have their target prices above their current trading prices, which suggests a positive outlook.

RSI levels for mining stocks are known to follow the trend of the prices. RSI levels thus also rebounded recently. The RSI levels for EGO, ASR, IAG, and HMY are 54, 60, 49.3, and 50.9, respectively.


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