29 Mar

How Miners Fared on Wednesday

WRITTEN BY Meera Shawn

Miners’ performances

Most mining companies fell on Wednesday, March 28, following gold and silver. The rebound of the US dollar was most likely the reason behind the drop of metals and miners.

In this article, we’ll look at the primary technical readings—moving averages and relative strength index (or RSI) scores—for select miners. The miners we’ve selected for analysis are Newmont Mining (NEM), Wheaton Precious Metals (SLW), Eldorado Gold (EGO), and IAMGOLD (IAG). All these stocks fell on Wednesday alongside gold and silver. These stocks were down 1.6%, 1.1%, 2.7%, and 2.6%, respectively.

How Miners Fared on Wednesday

However, all of the miners with the exception of NEM have fallen this year. NEM has risen 2.3%, while SLW, EGO, and IAG have fallen 9.3%, 43.1%, and 11.5%, respectively. The VanEck Vectors Gold Miners ETF (GDX) has dropped 6.8%.

Moving averages

NEM, SLW, and IAG are trading above their 20-day moving averages. NEM is also above its longer-term 100-day moving average. SLW, EGO, and IAG are below their longer-term 100-day moving averages.

A stock trading at a considerable discount to a moving average is indicative of a potential increase in stock price, while a significant premium suggests a drop. All four miners’ target prices are higher than their current trading prices, which is a positive sign.

Relative strength index

On March 28, 2018, NEM, SLW, EGO, and IAG had RSI readings of 55.1, 57.9, 13.6, and 49.1, respectively. The VanEck Vectors Gold Miners ETF had an RSI score of 50.1. An RSI score above 70 suggests an impending downward price correction, while a score below 30 indicates an upward price correction.

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