Usually, precious metals mining companies follow precious metals. When precious metals rose on April 11, 2018, miners followed suit. Most miners saw an up day on April 11, though that may not always be the case.
In this article, we’ll look at the primary technical readings—moving averages and RSI (relative strength index) scores—of a select group of miners. The miners we’ve selected for analysis are First Majestic Silver (AG), Agnico Eagle Mines (AEM), Pan American Silver (PAAS), and Eldorado Gold (EGO). Among these four miners, only PAAS holds a YTD (year-to-date) gain of 6.4%, while AG, AEM, and EGO have YTD falls of 1.9%, 4.8%, and 29.4%, respectively. The mining-based fund that we’ve added to this discussion has seen a fall of 2.1% during the same timeframe.
NEM and IAG have seen YTD rises of 2.8% and 12%, respectively, while GOLD and ABX have fallen 19.5% and 12.4%, respectively. The VanEck Vectors Junior Gold Miners ETF (GDXJ) has seen a fall of 5.3%.
Moving average analysis
AG, AEM, and PAAS are trading above their 20-day moving averages and also above their 100-day moving averages, while EGO is trading below its 100-day moving average but above its 20-day moving average.
A stock’s trading at a massive discount to its moving average suggests a potential rise in its price, while a significant premium indicates a fall. All four miners’ target prices are considerably higher than their current trading prices, which is a positive indicator.
Relative strength index
On April 11, 2018, AG, AEM, PAAS, and EGO had RSIs of 66.2, 70.9, 67.6, and 46.8, respectively. The VanEck Vectors Gold Miners ETF had an RSI of 60.9. An RSI of above 70 suggests an impending downward price correction, while a score of below 30 indicates an upward price correction.