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Posts Tagged ‘uxg U.S. Gold Cup and Handle’

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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

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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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Buy U.S. Gold (UXG) Price Moving Higher After Cup and Handle Breakout

In Stock Movers on June 10, 2010 at 4:22 pm

The cup and handle breakout is a classic pattern which stock market traders search for constantly. A cup and handle pattern means that the stock has made a consolidation where many of the weaker holders sell their shares. Then as the stock breaks into new highs a handle is formed. It is formed because many investors who bought at the previous high are now trying to get back the capital that was initially invested at the previous high. Then a handle is formed. A handle should move sideways or slightly down so investors who bought at the previous high can get back their capital. Once this handle is completed the stock has very little selling pressure and buyers now gain control and push the stock into new highs. Many times the percentage gains are impressive.

Sometimes a stock forms a triangular pennant after a breakout as in the case of U.S. Gold (UXG). These triangular pattern in a handle are bullish and provide investors an opportunity to get in before a major run.

My ideal buy point is after the breakout of the cup when the handle pulls back to key support.  Right now is a good opportunity to add shares before a breakout at $4.31.

There are four upcoming events that could make this stock move.

1) 20 drilled hole results from El Gallo in 2 weeks.

2) El Gallo Initial Resource Estimate in 4 weeks.

3)Additional Results From Regional Exploration in 6 weeks.

4)El Gallo Economic Assessment by year end.

I am excited by the results coming out in mid July from the regional exploration.  UXG invested a lot into Mexico this year knowing that this land package could contain a massive amount of silver.  I am excited for the next few weeks both from a technical and fundamental perspective.