In this part, we’ll focus on miners’ moving averages and RSI (relative strength index) readings. The miners that we’ll analyze are New Gold (NGD), Sibanye Gold (SBGL), Hecla Mining (HL), and Alacer Gold (ASR).
Among the four miners that we’re discussing, New Gold and Sibanye Gold have a YTD loss of 13.7% and 7.7%, respectively, while Hecla Mining and Sibanye Gold have a marginal YTD gain of 1.3% and 0.9%, respectively. The VanEck Vectors Gold Miners Fund (GDX) has a YTD loss of almost 1%.
All four of the miners that we’re covering in this part are trading below their 100-day moving average, except Alacer Gold. Hecla Mining and Alacer Gold are trading above their 20-day moving average, while New Gold is trading below its 20-day moving average.
The target prices for all four of the miners are above their current prices, which indicates a positive outlook.
Relative strength index
The RSI levels for all four of the miners recently declined due to the sump in precious metals. New Gold, Sibanye Gold, Hecla Mining, and Alacer Gold have RSI levels of 31.7, 40.3, 47, and 42.6, respectively. GDX has an RSI level at 38.4. An RSI score that’s lower than 30 suggests a potential rise in the price, while an RSI score above 70 suggests a potential decline in the price.