Analyzing Mining Stocks’ Technical Indicators


Dec. 6 2017, Updated 7:32 a.m. ET

Mining stock

In this part, we’ll analyze mining stocks’ technical indicators. We’ll discuss the call implied volatility and RSI (relative strength index) indicator for Gold Fields (GFI), Coeur Mining (CDE), Hecla Mining (HL), and IamGold (IAG).

The call implied volatility is an analysis of the price changes in the stock price given the changes in its call option. The RSI level indicates the overbought and underbought nature of the stock.

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Gold Fields, Coeur Mining, Hecla Mining, and IamGold have call-implied volatilities of 40.4%, 46.7%, 33.6%, and 44.3%, respectively. The volatility in mining stocks is often much higher than the volatility in precious metals.

RSI scores

RSI scores are used to evaluate whether a stock is comparatively overpriced or underpriced. If a stock’s RSI score is above 70, it might be overbought and its price could fall. If a stock’s RSI score is below 30, it might be oversold and its price could increase.

Gold Fields, Coeur Mining, Hecla Mining, and IamGold have RSI scores of 59.8, 72.1, 32.2, and 22.5, respectively. Mining-based funds like the Sprott Gold Miners (SGDM) and the Global X Silver Miners (SIL) have a five-day trailing loss of 2.6% and 2%, respectively.


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