Miners rebounded

Mining stocks saw mixed performances as the direction of precious metals remained unclear on July 19, 2017. While gold was almost flat, silver rose marginally, and platinum and palladium both saw down days.

In this part of the series, we’ll discuss the technicals of mining stocks Eldorado Gold (EGO), Alacer Gold (ASR), IAMGOLD (IAG), and Harmony Gold (HMY).

How Closely Are Miners Tracking Precious Metals?

Overall, fluctuations in precious metals are crucial determinants of mining stocks’ performances.

On a year-to-date (or YTD) basis, EGO, ASR, and HMY fell 22.7%, 10.7%, and 20.8%, respectively, on July 19. In contrast, IAG rose almost 34% on the day. The VanEck Vectors Junior Gold Miners ETF (GDXJ) was trading at a marginal YTD fall of 4% on the day.

Miners’ technicals

All four of these miners were trading below their long-term 100-day moving averages except for IAMGOLD. Eldorado and Alacer were also trading below their 20-day moving averages.   

The target prices of these miners remain significantly higher than their current trading prices, suggesting positive outlooks for the associated precious metals.

The RSI (relative strength index) levels of these mining stocks have improved over the past week due to the reversal in precious metals prices. GDXJ’s RSI level was 40 on July 19, 2017.

Latest articles

JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.

17 May

What to Know about the US-China Trade War

WRITTEN BY Mayur Sontakke, CFA, FRM

The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.

On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.

Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.

Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.

According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.