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How Mining Stocks’ Technicals Moved at the End of April

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May. 1 2018, Published 7:03 a.m. ET

Mining stock analysis

The recent downturn in metals prices has had a considerable impact on miners. Most of them have entered the red territory. 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 Alamos Gold (AGI), B2Gold (BTG), Goldcorp (GG), and New Gold (NGD).

The miners have seen a mixed reaction over the last 30 trading days. AGI has been flat, BTG and GG have risen 2.5% and 0.36%, respectively, while NGD has fallen 1.6%.

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Volatility analysis

Implied volatility measures price fluctuations in an asset based on changes in the price of its call option. AGI, BTG, GG, and NGD have implied volatilities of 36.8%, 61.8%, 31.1%, and 51.8%, respectively.

RSI readings

A stock’s RSI score indicates whether it’s overbought or underbought. An RSI level of 70 and above suggests that a stock could be overbought and that its price could fall. An RSI level lower than 30 indicates that a stock could be oversold and its price could rise. AGI, BTG, GG, and NGD have RSI levels of 52.3, 62.5, 48.2, and 47.1, respectively.

The VanEck Vectors Junior Gold Miners (GDXJ) and the iShares MSCI Global Gold Miners (RING) have also been closely tracking precious metals. They have fallen 1.2% and 1%, respectively, on April 25.

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