As mining companies are known to closely track precious metals, in this article, we’ll look at how a few miners have moved over the past month as well as their technical indicators. We’ll look at the RSI (relative strength index) readings and implied volatility for these miners.
Call-implied volatility measures the changes that occur in a stock’s price with respect to the variation in the stock’s call option price. On September 15, Silver Wheaton, Franco-Nevada, Kinross Gold, and Harmony Gold had volatilities of 30.8%, 22.8%, 38.5%, and 53.1%, respectively. The volatility of mining stocks is often greater than the volatility of metals.
A stock’s RSI indicator helps us evaluate whether a stock is undervalued or overvalued. If a stock’s RSI score is above 70, it must be overbought, and its price may soon fall. If a stock’s RSI score is below 30, it could be oversold and might correct upward.
The RSI scores for the miners mentioned above have recuperated recently. Silver Wheaton, Franco-Nevada, Kinross Gold, and Harmony Gold have RSI scores of 50.3, 54.3, 72.1, and 71.3, respectively. All four miners have also seen a considerable rise over the past 30 trading days. They rose 6.8%, 3.3%, 15.6%, and 22.3%, respectively.
Among the mining funds that also closely follow the trend of precious metals are Vaneck Vectors Gold Miners (GDX) and Global X Silver Miners (SIL). These two funds have 30-day trailing losses of 2.4% and 2.9%, respectively.