Behind Mining Stock Technical Indicators as of Monday, October 16



The slump in mining stocks

Most of the precious metal mining companies had a down day on Monday, October 16, after seeing a rise on Friday, October 13, as precious metals climbed in value. On Monday, however, mining stocks followed metals down. The SPDR Gold Shares (GLD) fell 0.69% on Monday.

On a YTD (year-to-date) basis, Alamos Gold (AGI), Silver Wheaton (SLW), Barrick Gold (ABX), and Kinross Gold (KGC) have risen 2.3%, 3.5%, 1.6%, and 37.6%, respectively. GLD has closely tracked gold and has risen 12.2% YTD.

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Technical details

The above mining companies were trading below their longer-term 100-day moving averages on Monday, except for Silver Wheaton. The 20-day moving average won’t likely provide any clues to the price direction of these stocks right now.

Remember, if mining stocks are trading at a reasonably higher premium to their short- and long-term moving averages, they could soon see a downward revision in prices. If such stocks are trading at a good discount, prices could go up.

All four of these key mining stocks have seen their target prices rise higher than their current trading prices, which suggests a positive outlook. The RSI (relative strength index) levels for the above four mining stocks have been known to follow the trend of the prices, and so their RSI levels have increased lately.

AGI, SLW, ABX, and KGC currently have RSI levels of 50.3, 74.3, 44.4, and 50, respectively.


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