Mining stock analysis
Recent market unrest had a significant effect on precious metals, which increased. However, the US dollar has strengthened recently, which has had a negative impact on precious metals. The settling of the market unrest could have also caused a withdrawal of haven bids.
In this part of the series, we’ll look at miners’ RSI (relative strength index) scores and implied volatility. The miners we’ve selected for our analysis are Pan American Silver (PAAS), Coeur Mining (CDE), AngloGold Ashanti (AU), and Harmony Gold (HMY). In the last 30 days, miners’ performances have been mixed. PAAS and CDE have increased 4.3% and 2.2%, respectively, while AU and HMY have fallen 6.2% and 17.2%, respectively.
Implied volatility measures price fluctuations in an asset based on changes in the price of its call option. PAAS, CDE, AU, and HMY have implied volatilities of 34.4%, 46.2%, 37.4%, and 57.2%, respectively.
Relative strength index scores
A stock’s RSI score indicates whether it’s overbought or underbought. An RSI over 70 suggests that a stock could be overbought and that its price could fall, and a score below 30 indicates that a stock could be oversold and that its price could rise. PAAS, CDE, AU, and HMY have RSI scores of 68.1, 56.2, 37.1, and 20, respectively.
Precious metal mining funds, the VanEck Vectors Gold Miners (GDX) and the Sprott Gold Miners (SGDM), fell on Monday by 1.3% and 1.7%, respectively, due to the declines in all the precious metals. These two funds have a five-day trailing loss of 1.7% and 1.6%, respectively.