In this article, we’ll look at the moving average indicators of a select group of miners: First Majestic Silver (AG), Goldcorp (GG), Randgold Resources (GOLD), and IAMGOLD (IAG). We’ll also take a look at these miners’ returns over the past month. Precious metals miners are known to track the performances of precious metals closely.
All four of these miners have seen their prices rise on a YTD (year-to-date) basis. AG, GG, GOLD, and IAG have risen 4.2%, 15.7%, 1.2%, and 8.4%, respectively. The mining-based VanEck Vectors Junior Gold Miners ETF (GDXJ) has also seen a return of 2.6% during the same timeframe.
The moving average indicator can offer insight into the potential directional movements of precious metals. All four mining shares that we’ve selected for analysis have current prices that are considerably higher than their 20-day and 100-day moving averages. A huge discount below a moving average indicator could suggest a possible pullback in price, while a reasonable premium above a moving average indicator could indicate a fall in price.
The target prices of all four miners are reasonably higher than their respective trading prices, which suggests a positive outlook for miners.
Relative strength index
AG, GG, GOLD, and IAG had RSI (relative strength index) scores of 45.1, 71.1, 47.2, and 59.8, respectively, on January 23. The RSI score of GDXJ was 49.2 on the day. An RSI score of below 30 shows the potential for a price reversion, while a score of above 70 is an indication of a possible fall in price.