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Posts Tagged ‘gold cup and handle breakout’

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Market Makes Move Above 200 Day on Higher Volume

In Market Analysis on June 15, 2010 at 8:20 pm

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Today the major indices made an important move to regain the 200 day moving average and clear resistance on higher volume.  After making 2 previous attempts to cross the 200 day the markets are appearing to have made a successful double bottom.  The double bottom pattern would be more confirmed if the volume on today’s breakout was above average.

Nevertheless, it was higher than the previous day which means the bulls have won the short term battle and are in charge.

Also the Dow made a double top breakout on the point and figure and a break of a trend line.

Many leading stocks are showing bearish signal reversals on today’s rally which means it may have legs especially aerospace and defense stocks as the Middle Eastern Situation between Iran and Israel intensifies.  Any short positions need to be covered and additional buy recommendations will be coming shortly.

The rally was good for gold today and I expect a breakout to new highs shortly.  Gold is making an ascending triangle and I expect a breakout to new highs in the short term.  $122.50 would be the next breakout with a measured move expected to $137.5.

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New Gold (NGD) Showing Great Relative Strength To Gold

In Stock Movers on June 8, 2010 at 8:15 pm

After following and investing in the gold mining sector since 2000 I have tried to identify the major leaders in each run and greatest candidates for my capital.  I am looking at great relative strength to the price of gold.  This indicator shows me that this miner has great leverage to the price and even if gold stays flat this miner will outperform.

Today New Gold (NGD) made a triple top breakout relative to gold and shows great relative strength.  One of the reasons NGD is outperforming even though it has exposure to base metals is that the street is becoming aware of its amazing portfolio of assets, decreasing cash costs and major institutional insiders such as Pierre Lassonde and Seymour Shulich.  These are the type of investors who recognize value and growth both of which NGD has.

Today NGD was put on FTSE Gold Mines Index which is an important step in NGD’s growth story as its market cap has improved significantly since our original recommendation at 2.50 last May.  Precious metals are outperforming the general indexes.  When I see breakouts in specific miners relative to gold this is a huge buy signal and believe NGD will move higher.

NGD has the financial strength to withstand a market downturn and it seems that the investment community is becoming aware of NGD’s assets and growth story.