Mining stock analysis

Most mining stocks have risen during the past one month due to the revival in precious metal prices. The mining companies below are all more sensitive to movements in precious metals than they are to movements in the equities market in general. 

For our analysis here, we’ve selected First Majestic Silver (AG), Goldcorp (GG), IAMGOLD (IAG), and Harmony Gold (HMY). AG and HMY have 30-day trailing losses of 0.28% and 2.8%, respectively, while GG and IAG have 30-day trailing gains of 18.8% and 12%, respectively.

How Do Mining Stocks’ RSI Indicators Look?

Volatility analysis

Mining stock volatility is important, as it offers insight into the fluctuations in the price of an asset given the fluctuations in the price of its call option. AG, GG, IAG, and HMY have call implied volatilities of 52.6%, 32.9%, 43.5%, and 57.3%, respectively. 

RSI readings

When a stock’s RSI level is higher than 70, it indicates that it could be in overbought territory, so the stock’s price could fall. When a stock’s RSI indicator is less than 30, it indicates that the stock could be oversold, and thus its price could rise. AG, GG, IAG, and HMY have RSI levels of 54.6, 78.8, 61.2, and 38.6, respectively.

The VanEck Vectors Gold Miners Fund (GDX) and the Alps Sprott Gold Miners (SGDM) have also increased over the past five trading days by 3.6% and 4.1%, respectively.

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