Where Are Mining Stocks Headed Now?



Mining stocks’ performance

All the four precious metals had a good day on Wednesday, November 1, but the reactions of mining stocks were mixed. Below, we’ll look at some technical details of key mining stocks, such as moving averages and YTD (year-to-date) three-month returns, comparing the performances of Sibanye Gold (SBGL), Agnico-Eagle Mines (AEM), Randgold Resources (GOLD), and Kinross Gold (KGC).

SBGL, AEM, GOLD, and KGC, have seen YTD (year-to-date) losses of 13.8%, 5.4%, 28.6%, and 27.3%, respectively. The VanEck Vectors Gold Miners Fund (GDX) has seen a marginal YTD gain of 7.5% as of November 1.

Moving averages

Sibanye and Randgold are trading are trading above their 20-day and 100-day moving averages, while Agnico and Kinross are trading below their 20-day and 100-day moving averages.

Remember, a big discount to the 20-day and 100-day moving averages suggests a possible revival in price, while a premium suggests a likely fall. Notably, the target prices of these four miners are higher than their current trading prices, which indicates a potential increase in price.

RSI levels

ABGL, AEM, GOLD, and KGC have RSI (relative strength index) levels of 87.3, 34.8, 46.7, and 22.5, respectively. An RSI level below 30 tells us that we may see an upward movement in price, while an RSI above 70 tells us to get ready for a possible downturn in price.

GDX’s RSI was most recently 23.7, and so there’s a chance that GDX could revive and give a low RSI level.

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