In this article, we’ll focus on miners’ moving averages and relative strength index (or RSI) readings. The miners we’ve selected for analysis are Sibanye Gold (SBGL), Agnico Eagle Mines (AEM), Yamana Gold (AUY), and Kinross Gold (KGC).
These miners witnessed a YTD (year-to-date) rise in their prices, with the exception of Sibanye Gold, which lost 1.0% on a YTD basis. AEM, AUY, and KGC have risen 5.7%, 14.1%, and 3.2%, respectively, YTD.
The VanEck Vectors Gold Miners ETF (GDX) has also seen a 3.8% rise in its price. However, these miners and the GDX ETF saw their prices fall on January 25, 2018, due to the slump in precious metals.
A massive discount to a moving average could indicate a potential rise in price, while a considerable premium could indicate a possible fall in price.
AEM, AUY, and KGC are trading reasonably above their 20-day and 100-day moving averages, while SBGL is holding significantly below its 20-day and 100-day moving averages.
The target prices of all four miners are significantly above their current trading prices, indicating a positive outlook for miners.
Relative strength index
Sibanye Gold (SBGL), Agnico Eagle Mines (AEM), Yamana Gold (AUY), and Kinross Gold (KGC) had RSI readings of 37.9, 61.7, 63.4, and 48.4, respectively, on January 25. GDX’s RSI score is 55. An RSI score below 30 indicates a potential rise in price, while an RSI score above 70 indicates a likely price decrease.