A Look at the Technicals of Miners in May



Mining stocks analysis

After reviving compared to their previous losses, the four precious metals are in negative territory again. The revival of the US dollar had a negative impact on precious metals and mining stocks during the past few weeks. The settling of the market’s 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 volatilities. The miners we’ve selected for our analysis are Yamana Gold (AUY), Barrick Gold (ABX), Anglo Ashanti (AU), and Hecla Mining (HL). In the last 30 days, Yamana Gold and Anglo Ashanti fell 3.1% and 7.7%, respectively, while Barrick Gold and Hecla Mining rose 0.15% and 4.0%.

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Volatility analysis

Implied volatility measures price fluctuations in an asset based on variations in the price of its call option. AUY, ABX, AU, and HL have implied volatilities of 42.1%, 26.1%, 35.4%, and 35.8%, respectively.

RSI scores

A stock’s RSI score indicates whether it’s overbought or underbought. An RSI greater than 70 suggests that a stock could be overbought and that its price could fall. A score below 30 indicates that a stock could be oversold and that its price could rise. AUY, ABX, AU, and HL have RSI scores of 45.3, 40.0, 40.2, and 51.7, respectively.

Among the precious metals mining funds, the VanEck Vectors Junior Gold Miners ETF (GDXJ) and the Global X Silver Miners ETF (SIL) fell 2.1% and 2.1%, respectively, on May 15 following the slump in the precious metals.


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