When investors look forward to investing in mining shares, it is critical that they look at a few technical details of these shares. In this article, we have selected four miners for a comparative study, and we’ll focus on their RSI readings and implied volatility.
The call-implied volatility is used to measure the price fluctuations of a stock’s price concerning changes in the stock’s call option. On November 22, 2017, B2Gold, Barrick Gold, AngloGold, and IamGold had call-implied volatilities of 54.8%, 29.1%, 40.9%, and 44.3%, respectively.
Mining stocks are often volatile and are known to follow the price trends in precious metals. However, that is not always the case.
RSI levels are used to assess whether a stock is overvalued or undervalued. If a stock’s RSI score is higher than 70, it might be overbought, and its price could fall. If a stock’s RSI level is below 30, it could be oversold, and its price could rise. ABX and IAG have 30-day trailing losses, while BTG and AU have 30-day trailing gains.
BTG, ABX, AU, and IAG have RSI scores of 63.6, 51.8, 72.3, and 50.8, respectively.