How Miners’ Technical Indicators Compare


May. 15 2018, Updated 6:34 a.m. ET

Miners’ performance

Precious metal mining companies typically follow precious metals. Last week, all four precious metals regained some strength.

In this part of the series, we’ll look at a select group of miners’ primary technical readings—their moving averages and RSI (relative strength index) scores. The miners we’ve selected for analysis are Newmont Mining (NEM), Randgold Resources (GOLD), Barrick Gold (ABX), and Eldorado Gold (EGO). Year-to-date, only NEM has risen, by 7.7%. Meanwhile, GOLD, ABX, and EGO have fallen 20.5%, 6.5%, and 32.9%, respectively. The VanEck Vectors Junior Gold Miners ETF (GDXJ) has fallen marginally, by 0.09%.

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Moving averages

NEM, GOLD, and EGO are trading below their 20-day moving averages, while ABX is trading above its 20-day and 100-day moving averages. A stock trading at a discount to its moving average suggests a potential price rise, while a premium indicates a decline. All four miners’ target prices are considerably higher than their current trading prices, suggesting a rise.

Relative strength index

On May 10, NEM, GOLD, ABX, and EGO had RSI (relative strength index) scores of 39.1, 41.4, 58.7, and 46.9, respectively. The VanEck Vectors Junior Gold Miners ETF (GDXJ) had an RSI score of 57.2.


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