An analysis of mining stocks
In this part of our series, we’ll analyze mining stock price movements in relation to their moving averages. We’ll look at New Gold (NGD), Newmont Mining (NEM), Wheaton Precious Metals (SLW), and Coeur Mining (CDE).
Among these four miners, New Gold and Coeur Mining have seen YTD (year-to-date) losses of 14.3% and 22.3%, respectively, while NEM and SLW have seen YTD gains of 1.5% and 8.1%, respectively. The VanEck Vectors Gold Miners ETF (GDX) has risen a marginal 2.4% during the same time frame.
Moving average readings
All four of these mining stocks are trading below their 20-day and 100-day moving averages. Remember, a considerable discount below the 20-day and 100-day moving averages suggests a potential revival in prices, while a reasonable premium indicates a likely fall.
All four miners of these miners have current trading prices below their target prices, which also indicates a positive outlook for their prices.
NGD, NEM, SLW, CDE now have RSI (relative strength index) levels of 28.1, 31.2, 48.7, and 32.5, respectively. Remember, an RSI level below 30 indicates a probable rise in price, while an RSI higher than 70 shows a possible fall in price. GDX’s RSI level is now 22.7.