Precious metals have been going back and forth between gains and losses on trade fears and changes in the dollar. On March 6, all four precious metals had an up day, which also led to gains for miners. This article will discuss the performance of silver mining stocks including Wheaton Precious Metals (SLW), Pan American Silver (PAAS), Coeur Mining (CDE), and Hecla Mining (HL). All these stocks saw an up day on Tuesday, March 6, with rises of 3.3%, 1.9%, 0.26%, and 7%, respectively.
We’ll also look at moving average indicators and RSI (relative strength index) readings. All these four miners except Coeur Mining have seen a marginal fall in their price on a YTD basis. The Global X Silver Miners (SIL), a silver-based mining fund, has fallen 6% on a YTD basis.
Among these four mining companies, HL and SLW are trading above their shorter-term 20-day moving average. PAAS and CDE are below their 20-day moving average. All the four miners, except CDE, are trading above their longer-term 100-day moving average. A massive discount to a moving average could indicate a potential rise in prices, while a considerable premium could indicate a possible fall in prices. SIL is also below its 100-day moving average but above its 20-day moving average. Target prices for all these miners are considerably above their current trading prices, suggesting a positive outlook for miners.
Relative strength index
SLW, PAAS, CDE, and HL had RSI levels of 60.5, 45.7, 50.4, and 53.7, respectively, on March 6. SIL’s RSI is 50.9. An RSI level higher than 70 suggests a potential downward correction in price, while a level below 30 indicates a possible rise in price.