Precious metals miners
Though most of the time, mining companies are known to closely track the fluctuations in gold and silver, on May 23, while precious metals fell, most miners stayed afloat.
However, if we look at the overall performance of miners so far in 2018, it’s been pretty disappointing. In this article, we’ll discuss the moving averages, returns, and RSI (relative strength index) scores of Sibanye Gold (SBGL), Gold Fields (GFI), Coeur Mining (CDE), and Barrick Gold (ABX). SBGL, GFI, and ABX have fallen 44.4%, 15.3%, and 7.9%, respectively. CDE has managed a rise of 10.7%.
The VanEck Vectors Junior Gold Miners ETF (GDXJ) has fallen 3.2% year-to-date, though it rose 0.85% on May 23. Among the miners under discussion, SBGL and CDE fell 5.3% and 0.36%, respectively, while GFI and ABX rose 1.1% and 1.6%, respectively, on the day.
Moving average indicator
SBGL and GFI are trading at considerable discounts to their 20-day and 100-day moving averages. While ABX is trading above its 100-day moving average but below its 20-day moving average, CDE continues to trade considerably above both its 20-day and 100-day moving averages. Usually, a stock’s trading at a significant discount to its moving average suggests a potential price rise, while a significant premium indicates a fall.
All four miners’ target prices are considerably higher than their current trading prices, suggesting potential rises.
On May 23, SBGL, GFI, CDE, and ABX had RSI scores of 22.2, 24.1, 58.9, and 43.8, respectively. GDXJ had an RSI score of 43.3. An RSI score of above 70 suggests an impending downward price correction, while a score of below 30 indicates an upward price correction.