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A Brief Analysis of the Miners in November 2017

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Analyzing the miners

Precious metal miners are historically known to follow the price trend of precious metals, as these metals are their core assets.

This article will focus on the technical readings of miners—their moving averages and RSI level. The miners we have selected are Royal Gold (RGLD), Goldcorp (GG), Randgold Resources (GOLD), and Sibanye Gold (SBGL).

Among those four miners, only Goldcorp has seen a YTD fall of a marginal 1.7%. Although the other miners do not display massive gains for the year, they are at least in positive territory.

Royal Gold, Sibanye, and Randgold have risen 37.7%, 17.0%, and 26.3% year-to-date (or YTD), respectively. The silver-based Global X Silver Miners ETF (SIL) had a marginal YTD loss of 1.2% on November 22, 2017.

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Moving averages

All four miners that we are discussing are trading above their 100-day and 20-day moving averages. A considerable discount below the 20-day and 100-day moving averages indicates a possible revival in price, while a reasonable premium could be indicative of a potential fall.

All four mining stocks’ target prices are higher than their current trading prices, which suggests that there could be a rise in price.

RSI

RGLD, GG, SBGL, and GOLD reported RSI levels of 52.5, 62.7, 49.2, and 81.4, respectively. An RSI level lower than 30 indicates a potential upward movement in price, while an RSI above 70 denotes a possible downturn in price. SIL’s RSI level is 48.7.

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