Mining stock performance
Precious metals had a down day on Tuesday, October 17, but mining stocks witnessed a mixed reaction that same day. In this final part of our series, we’ll assess the moving averages of key mining stocks over the past month, using Royal Gold (RGLD), Goldcorp (GG), Agnico-Eagle Mines (AEM), and Franco-Nevada (FNV). These miners, except Goldcorp, had a down day on Tuesday.
On a YTD (year-to-date) basis, RGLD, AEM, and FNV have risen 38.3%, 7.3%, and 33.3%, respectively, while Goldcorp has seen a YTD loss of 3.4%. The gold-based VanEck Vectors Junior Gold Miners (GDXJ) has seen a YTD rise of 7.4%.
These miners, except Royal Gold, are trading below their 100-day moving averages.
Remember, if mining shares are trading at a reasonably higher premium to their short- and long-term moving averages, they could soon see a downside in price. If such stocks are trading at a reasonable discount, prices could correct upward.
All four of these key mining stocks have seen their target prices rise above their current trading prices, which suggests a positive outlook. The RSI (relative strength index) levels of these four mining stocks have been known to follow their price trends, and their RSI levels have rebounded recently.
Generally speaking, RSI above 70 indicates that a drop in price is possible, while below 30 indicates that a rebound in price could be around the corner.
RGLD, GG, AEM, and PPP currently have RSI levels of 59, 65, 47.1, and 59, respectively.