Which Way Are Mining Technicals Pointing Now?



Mining stocks’ movements

Mining stocks have bounced back from the choppy markets they’ve seen in the past week. However, on July 24, 2017, there was a downward trend among these miners. It’s crucial for investors to understand indicators such as volatility and the RSI (relative strength index) when making investment decisions.

In this article, we’ll look at the technicals of Agnico Eagle Mines (AEM), Silver Wheaton (SLW), Franco-Nevada (FNV), and Randgold Resources (GOLD).

Article continues below advertisement

Call-implied volatility

Call-implied volatility looks at the changes in the price of an asset concerning variations in the price of its call option. On July 24, Agnico Eagle, Silver Wheaton, Franco-Nevada, and Randgold had implied volatilities of 34.4%, 30.8%, 27.2%, and 27.7%, respectively. Mining stocks’ volatilities are often greater than those of precious metals.


The RSI is used to determine whether an asset has been overbought or oversold. If an asset’s RSI level is above 70, it could see a fall because it’s likely overbought. If an asset’s RSI level is below 30, it could be oversold, and its price could rise.

Lately, the RSI levels of the four miners mentioned above have rebounded. Agnico Eagle, Silver Wheaton, Franco-Nevada, and Randgold have RSIs of 66, 55.2, 62.2, and 57.8, respectively.

The precious metals–based VanEck Vectors Junior Gold Miners ETF (GDXJ) and the Sprott Gold Miners ETF (SGDM) have also rebounded over the past week, rising 2% and 1.7%, respectively, as of July 24, 2017.


More From Market Realist