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Mining Stocks’ 2018 Technical Readings

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Mining stock performance

Precious metal miners had a reasonably good start to 2018. Overall, on a YTD (year-to-date) basis, precious metals’ reactions have been mixed. With more interest rate hikes likely coming in 2018, experts expect precious metals and precious metal miners to underperform. 

In this part of our series, we’ll look at miners and their technical indicators. The miners we selected for this analysis are Coeur Mining (CDE), AngloGold Ashanti (AU), Kinross Gold (KGC), and IamGold (IAG).

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These four miners have all witnessed lower prices over the past 30 trading days. CDE, AU, KGC, and IAG have fallen 2.4%, 10.2%, 11.5%, and 4.7%, respectively, on a 30-day trailing basis. The Global X Silver Miners Fund (SIL) and the iShares MSCI Global Gold Miners (RING) rose marginally by 0.0.3% and 0.40%, respectively, on Monday, March 5.

Volatility analysis

Implied volatility measures price fluctuations in precious metals, given the changes in the prices of their call options. CDE, AU, KGC, and IAG have implied volatility figures of 46%, 39.8%, 43.2%, and 47%, respectively.

RSI readings

RSI (relative strength index) levels provide insight into whether a stock is overbought or underbought. When a stock’s RSI level is above 70, it shows that the asset could be in overbought territory, so its price might correct downward. 

When a stock’s RSI indicator is below 30, it suggests that the stock could be oversold and its price could increase. An index above 70 indicates an overbought scenario and a possible downward price correction. CDE, AU, KGC, and IAG have RSI levels of 53, 31.7, 35.2, and 44, respectively.

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