4 May

Reading the Volatility of Precious Metal Miners in May

WRITTEN BY Meera Shawn

Mining stocks analysis

Last month, the market’s unrest had a significant effect on precious metals and miners, leading to increases in prices. However, the US dollar has strengthened recently, which had a negative impact on precious metals and mining stocks. The settling of the market 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 Wheaton Precious Metals (SLW), Cia De Minas Buenaventura (BVN), and Iamgold (IAG). In the last 30 days, these four miners have risen, except for BVN, which had a marginal fall of 0.38%. SLW, KGC, and IAG have risen 3%, 1.3%, and 9.6%, respectively.

Reading the Volatility of Precious Metal Miners in May

Volatility analysis

Implied volatility measures price fluctuations in an asset based on variations in the price of its call option. SLW, BVN, KGC, and IAG have implied volatilities of 30.8%, 28.5%, 34.8%, and 41.3%, respectively.

Relative strength index scores

A stock’s RSI score indicates whether it’s overbought or underbought. An RSI over 70 suggests that a stock could be overbought and that its price could fall. A score below 30 indicates that a stock could be oversold and that its price could rise. SLW, BVN, KGC, and IAG have RSI scores of 50, 29.4, 71.1, and 52.6, respectively.

Among the precious metal mining funds, the iShares MSCI Global Gold Miners (RING) and the Sprott Gold Miners ETF (SGDM) rose 0.94% and 0.51%, respectively, on May 3. These two funds have year-to-date losses of 3.2% and 4.4%, respectively.

Latest articles

Hexo (HEXO) had a hard time last week. A lot of headwinds pulled the stock down. However, the stock rose and closed with a gain of 17% on Thursday.

Elliott Management expects AT&T stock to reach $60.0 by the end of 2021 if it adopts the restructuring plan. The stock has a potential upside of almost 60%.

Tesla (TSLA) stock is having a strong run this month. After a weak start, the stock has closed with gains for nine consecutive trading days.

Chipotle is scheduled to report its third-quarter earnings on October 22. Despite the rise in the stock, Chipotle's earnings could drive the stock more.

The Cannabis 2.0 era has officially started. Now, Canadians can legally access a host of cannabis-infused products like beverages, vapes, and edibles.

Despite vaping concerns, Aurora Cannabis plans to introduce vape products in December. Reports of vaping-related illnesses started in late August.