Usually, precious metal mining companies follow precious metals for price direction. All four precious metals except palladium saw a down day on Friday, April 20. That led to a fall in most miners’ prices.
In this part of the series, we’ll look at the primary technical readings, including moving averages and RSI (relative strength index) scores for a select group of miners. The miners we’ve selected for analysis are New Gold (NGD), Sibanye Gold (SBGL), Gold Fields (GFI), and Wheaton Precious Metals (SLW). These four stocks have YTD (year-to-date) losses of 24.3%, 23.6%, 6.5%, and 3.7%, respectively. The VanEck Vectors Gold Miners ETF (GDX) has fallen 2.3% YTD.
Among the above four miners, Wheaton Precious Metals (SLW) fell on April 20 by 1.8% due to the upswing in precious metals. BTG, GFI, AUY, and HL rose 1%, 1%, 1.4%, and 1.9%, respectively. The VanEck Vectors Junior Gold Miners ETF (GDXJ) rose 0.95% on Wednesday, April 18. It has a YTD loss 0.47%.
Moving average analysis
All four miners except SLW are trading below their longer-term 100-day moving averages. SLW and GFI are trading above their 20-day moving averages. A stock trading at a huge discount to its moving average indicates a potential increase in price, while a significant premium shows a fall. All four miners have target prices considerably above their current trading prices, which is a positive indicator.
Relative strength index
On April 20, NGD, SBGL, GFI, and SLW had RSI levels of 36.7, 43, 5, and 67.3, respectively. The VanEck Vectors Gold Miners ETF had an RSI level of 58.5. An RSI number above 70 suggests a possible downward price correction, while a score below 30 indicates an upward price correction.