In this part of the series, we’ll focus on miners’ moving averages and RSI (relative strength index) readings. The miners we’ve selected for analysis are Goldcorp (GG), Wheaton Precious Metals (SLW), Barrick Gold (ABX), and Kinross Gold (KGC).
SLW and ABX saw YTD (year-to-date) losses of 2.8% and 0.83%, respectively, while GG has a YTD gain of 12%. Kinross Gold has a no-gain, no-loss situation. The famous mining-based fund, the VanEck Vectors Gold Miners ETF (GDX), has a YTD gain of 1.9%.
GG is trading above its 20-day and 100-day moving averages, while ABX is trading below its 20-day and 100-day moving averages. A massive discount to a moving average could indicate a potential rise in price, while a considerable premium could indicate a potential decline in price. SLW and KG are trading above their longer-term 100-day moving averages but below their shorter-term 20-day moving averages.
The target prices of all four miners are well above their current trading prices, which suggests a positive outlook for these miners.
Relative strength index
GG, SLW, ABX, and KGC have RSI levels of 59.2, 48.7, 43.9, and 49.4, respectively, as of January 26, 2018. GDX’s RSI is 52.8. An RSI level below 30 indicates a potential rise in price, while an RSI level of more than 70 shows a likely price decline.