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How Did Miners Move in July 2017?

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Miners and metals

When investing in the precious metal market, it’s important to know which mining stocks are underperforming and which ones are outperforming their competitors. In this part of the series, we’ll review the performance of Sibanye Gold (SBGL), Gold Fields (GFI), Yamana Gold (AUY), and Pan American Silver (PAAS).

Sibanye, Gold Fields, and Pan American have YTD gains of 9.4%, 32.6%, and 11.8%, respectively. Yamana has a YTD loss of 7.5%. The mining-based VanEck Vectors Gold Miners (GDX) is trading with a YTD rise of 9.3%.

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Technicals of mining stocks

All four of the miners mentioned above are trading at premiums to their 20-day moving averages, and Gold Fields is also trading at a premium to its 100-day moving average. The other three miners are trading at a discount to their 100-day moving averages.

A considerably high premium over a stock’s price indicates a possible fall in price, and a considerable discount to a stock’s price suggests a probable rise in price. 

These miners’ target prices are higher than their current trading prices with the exception of GFI and Sibanye. When the target price is lower than the current trading price, it indicates a negative outlook. On the other hand, a target price above the current price indicates a positive outlook.

The RSI levels of these miners have also recovered. The GDX ETF has an RSI of approximately 69.9.

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