How Are Miners’ Technicals Moving?


May. 10 2018, Updated 10:32 a.m. ET

Mining stocks analysis

The four precious metals have revived compared to their previous losses over the past five trading days. However, the revival of the US dollar has 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 Agnico Eagle Mines (AEM), Yamana Gold (AUY), Buenaventura (BVN), and IAMGOLD (IAG). In the last 30 days, these four miners have risen, except for BVN, which saw a marginal fall of 2%. AEM, AUY, and IAG have risen 1.2%, 5%, and 19.5%, respectively.

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Volatility analysis

Implied volatility measures price fluctuations in an asset based on variations in the price of its call option. AEM, AUY, BVN, and IAG have implied volatilities of 23.5%, 41.2%, 28.6%, and 36.2%, respectively.

RSI scores

A stock’s RSI score indicates whether it’s overbought or underbought. An RSI of over 70 suggests that a stock could be overbought and that its price could fall. A score of below 30 indicates that a stock could be oversold and that its price could rise. AEM, AUY, BVN, and IAG have RSI scores of 43.1, 48.7, 28.9, and 71.7, respectively.

Among the precious metals mining funds, the VanEck Vectors Gold Miners ETF (GDX) and the Sprott Gold Miners ETF (SGDM) have risen 1.1% and 0.25%, respectively, on a trailing-five-day basis.


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