Aastha Group discloses market speculations owing to Mining and Base Metals

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Stock market has not been showing impactful results in case of valuable gold and bullions lately, yet April has brought some comfort to precious metal miners as gold has performed outstandingly well from last three decades and gained the highest quarterly returns whereas Silver surpassed over gold in this race as shown an increase of massive 9.8% compared to the 0.79% gains in gold.Mohit Aggarwal, CMD, Aastha Group also enumerates the rising statistics of various commodities as Gold and silver miners Agnico-Eagle Mines (AEM) have gone up 55.4% while Silver Wheaton (SLW) reviewed an upward trend of 53.4% along with AngloGold Ashanti (AU) witnessed high of 110.8% and Hecla Mining (HL) has risen 95.8%.

In addition, Market Vectors JuniorGold Miners ETF (GDXJ) has leaped up 75.3% year-to-date. Nevertheless a pullback in prices is suggested since the quick gush in metals and miners has pushed current rates of Agnico-Eagle, AngloGold, and Hecla Mining which is comparatively much above their respective best target prices. No wonder, the future of Silver Wheaton continues to shine as the target price stays remarkably superior to its recent close.

Technical indicators in respect of these commodities also show the same trend as the premium rates are exhibited as 26.7%, 32.1%, 44.5%, and 60.2% for trading AEM, SLW, AU, and HL respectively to their 100-day moving averages. Further, 100-day moving average premium in case of trading GDXJ is 43.8%. Without a doubt 20-day moving averages are notably lower in case of these miners’ prices.

To distinguish, a level below 30 indicates that a stock has excessive sales and an upward jump may be expected while 70 above level depicts enormous purchase of a stock and presumes a downward revision, accordingly, RSI (relative strength index) reading with reference to Hecla Mining is recorded at 73.3 and in case of Market Vectors Junior Gold Miners ETF’s (GDXJ) is at 65.5.


Last modified: May 10, 2016

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