Reading Mining Companies’ Technical Indicators

Mining stock analysis

During the last month, the market unrest had a significant effect on precious metals, which caused them to rise. However, the previous week was choppy for precious metals, and the US dollar rebounded substantially, which had a negative impact. Most mining companies also faced the adverse effects of the precious metals slump.

In this article, 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), Pan American Silver (PAAS), Coeur Mining (CDE), and AngloGold Ashanti (AU). In the last 30 days, AUY, PAAS, and CDE have risen 3.9%, 3.8%, and 2.4%, respectively, while AU has fallen 7.8% during the same timeframe.

Reading Mining Companies’ Technical Indicators

Volatility analysis

Implied volatility is used to measure the price fluctuations in an asset based on the variations in the price of its call option. AUY, PAAS, CDE, and AU have implied volatilities of 47.8%, 32.1%, 42.7%, and 35.3%, respectively.

RSI scores

A stock’s RSI score indicates whether it’s been overbought or underbought. An RSI of over 70 suggests that a stock could be overbought and that its price could fall, and a score of below 30 indicates that a stock could be oversold and that its price could rise. AUY, PAAS, CDE, and AU have RSI scores of 63, 63.4, 51.1, and 43.8, respectively.

The Global X Silver Miners ETF (SIL) and the Sprott Gold Miners ETF (SGDM) rose 0.49% and 0.25%, respectively, on April 26, 2018, following choppy markets during the preceding days.