Analyzing mining stocks
We should also consider mining stocks’ price movements in relation to their moving averages. This article looks at Sibanye Gold (SBGL), Randgold Resources (GOLD), Eldorado Gold (EGO), and IamGold (IAG).
Among those four miners, only Eldorado Gold had a year-to-date or YTD loss, at 63.4%. Sibanye Gold, Randgold, and IamGold recoded YTD gains of 11.6%, 24%, and 45.5%, respectively.
The VanEck Vectors Gold Miners (GDX) fund saw a YTD rise of 8.6%.
These four miners show a three-month trailing loss. Tuesday, however, showed a mixed reaction to these four mining stocks.
Moving average readings
All four miners except Randgold are trading a discount to their 20-day moving average. All four miners except Sibanye are selling at a discount to their 100-day moving average. A substantial discount below the 20-day and 100-day moving averages indicates a possible revival in prices while a premium indicates a likely fall.
These four mining stocks’ target prices are considerably above their current trading prices, which suggests that there could be an increase in stock prices.
SBGL, GOLD, EGO, and IAG have their RSI levels at 46, 38.4, 42.2, and 52.6, respectively. An RSI level lower than 30 indicates a potential upward movement in prices while an RSI higher than 70 shows a possible downturn in prices. GDX’s RSI level is 55.4.