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Precious Metal Miners and Their Technicals


Apr. 11 2018, Updated 1:54 p.m. ET

Miners and how they’ve performed

Usually, precious metal mining companies closely follow precious metals. All four precious metals except platinum saw their prices rise on Tuesday, April 10, 2018.

In this part of our series, we’ll look at the primary technical readings—moving averages and relative strength index (or RSI) scores—for select miners. The miners we’ve selected for analysis are Newmont Mining (NEM), Sibanye Gold (SBGL), Gold Fields (GFI), and Pan American Silver (PAAS). Among these four miners, SBGL and GFI have seen YTD (year-to-date) falls of 26.1% and 13.5%, respectively. PAAS and NEM have risen 5.2% and 3.9%, respectively, during the same period.

The Alps Sprott Gold Miners ETF (SGDM), a mining-based fund, has fallen 4.9% YTD.

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Moving averages

NEM and PAAS are trading above their shorter-term 20-day moving averages and longer-term 100-day moving averages. GFI and SBGL are trading below their 20-day moving averages as well as their 20-day moving averages.

A stock trading at a massive discount to a moving average suggests a potential increase in the stock, while a significant premium indicates a decline. All four miners’ target prices are higher than their current trading prices, which is a positive sign.

Relative strength index

On April 10, 2018, NEM, SBGL, GFI, and PAAS had RSI readings of 62.5, 45.5, 46.2, and 70.4, respectively. The Alps Sprott Gold Miners ETF had an RSI score of 62.9. An RSI score above 70 suggests an impending downward price correction, while a score below 30 indicates an upward price correction.


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