Analyzing the Movement of Precious Metal Miners



Mining stocks’ performance

In order to analyze the precious metal market’s performance, it’s crucial to look at the core miners and their technical details. We’ll look at technical indicators such as moving averages and YTD (year-to-date) three-month returns.

We’ll compare the performances of B2Gold (BTG), Goldcorp (GG), Sibanye Gold (SBGL), and Silver Wheaton (SLW). BTG, SBGL, and SLW have YTD gains of 8.0%, 18.3%, and 9.5%, respectively, while Goldcorp has a YTD loss of 2.9%.

The VanEck Vectors Gold Junior Miners ETF (GDXJ) tracks the movement in gold and has a YTD gain of 3.0%.

Moving averages

These miners, except B2Gold, traded below their 20-day and 100-day moving averages on November 7. A significant discount to the 20-day and 100-day moving averages suggests a possible revival in the price, while a premium suggests a potential price decline.

Notably, the four miners’ target prices are above their current trading prices, which points to a potential increase in their prices.

RSI levels

B2Gold, Goldcorp, Sibanye Gold, and Silver Wheaton have RSI (relative strength index) levels of 45.3, 51.3, 90.9, and 64.9, respectively. An RSI level lower than 30 indicates that we might see upward movement in the price, while an RSI higher than 70 indicates a possible downturn in the price.

Recently, GDXJ’s RSI was 39.1, indicating that it could rise.

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