How Mining Stocks Have Moved in October 2017



Mining stocks fell

Precious metals had a mixed reaction on Wednesday, October 25, 2017, and so did mining stocks. In this series, we’ll look at some technical details of mining stocks such as moving averages and YTD (year-to-date) three-month returns. We’ll compare the performances of Agnico-Eagle Mines (AEM), Coeur Mining (CDE), Barrick Gold (ABX), and AngloGold Ashanti (AU).

All these mining stocks have fallen YTD except Agnico-Eagle Mines. Coeur Mining, Barrick Gold, and AngloGold Ashanti have fallen 8.3%, 1.4%, and 9.0%, respectively, YTD. Agnico-Eagle Mines has risen 4.6% YTD. The mining-based Sprott Gold Miners ETF (SGDM) has risen 8.3% YTD.

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Moving averages

Agnico-Eagle Mines, Coeur Mining, and Barrick Gold are trading below their 20-day and 100-day moving averages. AngloGold Ashanti is trading above its 20-day but below its 100-day moving averages.

A significant discount below the 20-day and 100-day moving averages suggests a possible revival in price, while a premium suggests a probable fall.

The target prices of these four miners continue to be higher than their current trading prices, which suggests a positive outlook for these miners.

RSI levels

All these miners except Agnico-Eagle Mines had a down day on Wednesday, October 25, 2017. Their RSI (relative strength index) levels have also fallen. AEM, CDE, ABX, and AU have RSI levels of 38.9, 23.7, 30.2, and 51.5, respectively. An RSI level below 30 indicates a potential upward movement in price, while an RSI above 70 indicates a possible downturn in price.


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