Most mining shares saw a downturn in their price on August 3 as precious metals also fell. The past few weeks were beneficial for miners. Precious metals showed a continuous uptrend with the decline in the US dollar.
Silver Wheaton and Pan American have YTD (year-to-date) gains of 3.1% and 10.7%, respectively. AngloGold and Harmony have YTD losses of 11.1% and 21.3%. The Sprott Gold Miners (SGDM) is trading with a YTD rise of 7.6%.
Technicals of mining stocks
AngloGold is trading below its 20-day and 100-day moving average. Silver Wheaton, Pan American, and Harmony are trading above their 20-day moving average, but below their 100-day moving average.
A reasonably high premium over a stock’s price suggests a possible fall in the price. A considerable discount to a stock’s price suggests a probable increase in the price.
These mining shares’ target prices are higher than their current trading prices. When the target price is less than the current trading price, it suggests a negative outlook. On the other hand, a target price above the current price indicates a positive outlook.
The miners’ RSI levels have also recovered. SGDM has an RSI of ~65.8.