Analyzing mining stocks
In this part of the series, we’ll look at the YTD (year-to-date) gains and moving average indicators of a few select miners—New Gold (NGD), Newmont Mining (NEM), Buenaventura Mining (BVN), and Harmony Gold (HMY).
Among those four miners, New Gold and Harmony Gold have fallen 9.7% and 17.2% YTD, respectively. New Gold and Buenaventura Mining have risen 5.9% and 19% YTD, respectively. The VanEck Vectors Gold Miners ETF (GDX) has a marginal YTD rise of 8% as of November 16, 2017.
New Gold and Newmont are trading below their 20-day and 100-day moving averages, while Buenaventura Mining is below its 20-day moving average. Harmony Gold is trading above its 20-day and 100-day moving averages. A substantial discount below the 20-day and 100-day moving averages indicates a possible revival in price, while a premium indicates a likely fall.
The four mining stocks’ target prices continue to be higher than their current trading prices, which suggests that there could be a rise in price.
New Gold, Newmont Mining, Buenaventura Mining, and Harmony Gold have RSI levels of 32.6, 53, 39.6, and 58.3, respectively. An RSI level below 30 indicates a potential upward movement in price, while an RSI above 70 indicates a possible downturn in price. GDX’s RSI level is 50.7.