Mining stock analysis
Miners had a good start in 2018. However, they later faced a carnage, mainly due to the rising strength of the US dollar. Let’s look at the technicals of mining stocks Goldcorp (GG), Wheaton Precious Metals (SLW), Buenaventura Mining (BVN), and Hecla Mining (HL).
Precious metals fell in price over the past month, which also reflected on miners. Among the four miners we’re looking at, only Buenaventura Mining has a 30-day trailing gain of 1.7%, while Goldcorp, Wheaton Precious Metals, and Hecla have fallen 8.8%, 9.6%, and 13.6%, respectively.
The Global X Silver Miners ETF (SIL) and the iShares MSCI Global Gold Miners (RING), both mining funds, have also seen their prices fall over the past month. They fell 10.9% and 10.4%, respectively, on a 30-day trailing basis.
The volatility readings for GG, SLW, BVN, and HL were 42.1%, 30.8%, 40.5%, and 59.9%, respectively. The volatility reading indicates the change in the value of the asset with respect to the change in the value of its call price.
A stock’s RSI (relative strength index) level indicates whether it is overbought or underbought. When a stock’s RSI level is higher than 70, it shows that the stock could be in overbought territory and that its price could fall. When its RSI level is lower than 30, it indicates that the stock could be oversold and that its price could rise. GG, SLW, BVN, and HL have RSI levels of 18.1, 21.1, 39.7, and 25.5, respectively.