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Posts Tagged ‘uxg u.s. gold amex’

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Relative Strength Signals Confirm Breakout in U.S. Gold (UXG)

In Stock Movers on June 24, 2010 at 10:59 am

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El Gallo’s story is continuing to impress the mining community.  U.S. Gold has invested a lot of capital into drilling El Gallo this year and believe that by 2013 they can be producing up to 10,000,000 ounces of silver a year plus 35,000 ounces of gold.  This drilling program has been extremely successful.  They have expanded the mineralization and are now showing a potential to connect different zones to have one large shallow open pit mine.  In two weeks the initial resource estimate will be published which should add momentum to this gold and silver growth story.

UXG’s shares have significantly outperformed mining stocks and gold bullion this year.  Since our initial recommendation from last May, UXG is up close to a 100%.

Even though UXG at the moment has little institutional sponsorship other than the CEO himself, I believe the investment community is coming to realize that the company has an impressive growth story.  That has been highlighted technically over the past 12 months.  You are welcome to view archived posts where I have shown the incredible strength these past 6 months.

Since investing in the mining sector since 2001 I have found relative strength to be a key indicator of where capital is flowing.  It is easy to identify which companies are experiencing increasing demand compared to a benchmark.  Since I consider myself a miner of mining stocks, I spend hours researching the mining companies which have the greatest ability to outperform gold bullion and the mining sector.  Even in a great precious metals bull market one can underperform if not aware of how to use technical analysis and relative strength. 

This chart shows the relative strength of UXG to the gold and silver index.  Clearly the breakout to new 52 week highs is confirmed by its bullish strength.  The longer the outperformance of price and the confirmed breakout leads me to believe its growth story going forward. 

Using relative strength one can evaluate if this recent breakout in UXG is sustainable.  The chart above shows a major breakout for UXG confirmed by relative strength.  I believe that this stock can significantly outperform the sector over the next few years as did Goldcorp did from 2001-2005 while Mr. Mcewen was CEO. 

Over the past 6 months UXG has significantly outperformed Mcewen’s former company Goldcorp.  While Goldcorp is up less than 15%, UXG is up close to a 100%.  This further emphasizes how important it is to use relative strength to really profit in precious metals bull market.

Price volume action is excellent highlighted by the big volume breakouts.  I believe UXG is a great long term growth story.  New investors who want to get in should wait for a pullback as it is short term overbought.

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U.S. Gold Making Major Gains, 90% Gain From Original Recommendation

In Stock Movers on June 17, 2010 at 9:10 pm

U.S. Gold (UXG) continues to be one of the best stocks in the overall market completely bucking the previous correction.  Please read my previous post from last week where I highlight the 4 major reasons this stock is moving and why I believe it will continue higher.  Click here for previous post.

We will have pullbacks but the next target for UXG is pre crash highs of $7.  UXG is leading the precious metals market as it is at the top of the list in performance over the past 6 months.

Best Performing Stocks
Symbol Company Name Percent Change Chart
RVS Riverstone Resources Inc. 114.81%
GMO General Moly, Inc. 84.34%
APLL Apolo Gold and Energy Inc 81.82%
UXG US Gold Corporation 79.27%
FRG Fronteer Gold Inc. 70.54%
BCLE Bio Clean International In… 50.00%
ANV Allied Nevada Gold Corp. 47.70%
RIC Richmont Mines Inc. 36.37%
DPM Dundee Precious Metals Inc… 34.37%
SA Seabridge Gold Inc. 34.19%

Notice two of our recommendations are up there General Moly and U.S. Gold.  New Gold would be up there as well with a 90 % gain but for some reason bigcharts doesn’t classify it as a gold stock.  Taseko is up close to 200% gain for the past year.

Since 2001 I have used technical analysis and specifically relative strength to focus on tomorrow’s leaders in the mining sector.  Having a discipline and following strength in a sector that is filled with shameless promotion is key to making gains.  Fundamentals analysis alone will not achieve the same investment return.

Here is a chart from our recommendation point of 6/2/09.

Subscribers have close to a 90% gain and I appreciate all the subscribers who waited patiently through the correction where we gave back a 45% gain.  I believe in holding on to winners.  Stocks that I recommend have potential to make huge gains, but one has to patient as stocks correct and create another base before blasting into new high territory as in the case of UXG.

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U.S. Gold Leading Junior Miners, Drilling New Areas

In Stock Movers on June 3, 2010 at 12:25 am

U.S. Gold (UXG) is one mining company where the CEO puts his money where his mouth is.  Rob Mcewen believes UXG will be on the SP500 and his aggressive drilling in Mexico is proving to the investment community that he has a major mine there.  Rob owns 21% of the shares much more than any other CEO in the business.

The chart shows that in the past 6 months UXG has been outperforming gold.  It is showing great relative strength.  I believe it will continue to do so as new areas in Mexico start drilling in June and he is continuing to show expanded mineralization.  Expect more positive results and outperformance of UXG especially how active they are drilling.

Chart shows a strong breakout on good volume and now it is making a bullish continuation wedge.  Look for an upside breakout.