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Analyzing the Upward-Moving Miners in August 2017

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Aug. 18 2020, Updated 6:33 a.m. ET

Miners versus metals

Most mining stocks have risen over the past one-month period, thanks to recent geopolitical tensions and the risk element in the market. Precious metals react positively to uncertainties, as do precious metal mining companies. Friday, September 1, was also an up day for gold, silver, platinum, and palladium. As a result, many mining shares also increased substantially.

In this part of the series, we’ll review the performance of Newmont Mining (NEM), Agnico Eagle Mines (AEM), IamGold (IAG), and Harmony Gold (HMY).

All four mining shares, except Harmony Gold, have seen a year-to-date (or YTD) rise in their prices. HMY has fallen 8.1% since the beginning of the year.

However, NEM, AEM, and IAG have increased 13.5%, 22.0%, and 74.3%, respectively, during the same timeframe. The VanEck Vectors Gold Miners ETF (GDX) has seen a YTD rise of 18.5%.

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Technical indicators

The above four miners are trading at premiums to their 20-day and 100-day moving averages. A considerable premium over a stock’s price indicates that the price could fall. A reasonable discount to a stock’s price suggests a possible rise in the price.

These miners’ target prices are currently higher than their current trading prices. When the current price is above the target price, it gives a negative outlook. However, a target price above the current price indicates a positive outlook.

The RSI levels of these miners have also increased substantially along with their prices. NEM, AEM, IAG, and HMY have respective RSI levels of 77.5, 81.5, 86.9, and 68.6.

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