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6 Volatile Gold Mining Stocks and How to Trade Them on Technicals

Stocks in this article: ABX AU AUY GG NEM RGLD

NEW YORK (TheStreet) -- The bubble in Comex gold began from its 200-week simple moving average at $651.3 in October 2008. The bubble inflated to as high as $1923.7 the Troy ounce in September 2011. Breaking below the 200-week SMA at $1435.3 between mid-April 2013 and mid-May 2013 was the final signal that the gold bubble had popped.

Here's the weekly chart for Comex gold futures.

Courtesy of MetaStock Xenith

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The weekly chart for gold is negative, with its five-week modified moving average at $1300.9 and its 200-week SMA peaking at $1498.9.

Courtesy of MetaStock Xenith

The post-bubble low for gold has been $1179.4, set in June 2013. The low on the daily graph above is $1181.4, set on December 31, 2013. Gold moved above its 200-day SMA at $1309.5 on Feb. 14, and the 2014 high so far is $1392.6 on March 17.

Gold has been trading back and forth around its 200-day SMA now at $1285.4 since Feb. 14. A quarterly value level is $1234.6, with a monthly pivot at $1304.3 and semiannual risky level at $1613.0.

Let's measure the performance of six gold mining stocks vs. the performance of gold. Two "crunching the numbers" tables follow.

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Barrick Gold (ABX - Get Report) ($18.45) is up 4.7% year to date and led the early-2014 gold rally. The stock traded as low as $15.26 on Dec. 4, crossed above its 200-day SMA at $18.30 on Jan. 17 and traded as high as $21.45 on Feb. 25 before the 2014 peak in gold. Barrick traded as low as $15.47 on May 28 before the low in gold. The stock is above its 200-day at $18.12 with gold below.

The weekly chart is neutral, with Barrick just below its five-week MMA at $18.46. In common with gold, the stock is well below its 200-week SMA at $34.38. A semiannual value level is $17.82 with a monthly risky level at $19.32.

Up next: Anglogold and Yamana Gold.

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