Chart of the Week: Eldorado Gold
Hey good morning everybody. Time for our chart of the week, and we’re gonna take a look at Eldorado Gold, one of the better gold miners out there. There’s some other good ones, like Agnico Eagle Mines and Newmont Mining and Kinross Gold, but EGO has really shown a nice pattern of higher highs, higher lows.
Let’s take a look at this chart, and you can see from the interim lows that they made back in early November at around the $25 mark, the stock has just made a beautiful set of higher highs and higher lows. In fact, there’s a nice uptrend channel built here, connecting some of the highs and some of the lows as well.
We’re kind of at the lower end of this channel here. And we think it’s a good chance this thing could just really take off here. I know gold has been on fire, making its way towards $5,000 an ounce. Not many people saw that happening some years ago, but it’s right there.
Seeing really good strength on the RSI as well. You can take a look at that. Every time it falls and offers a dip opportunity, the buyers step in there and do that, as they did back in the early part of January.
Williams % R, still strong and above the resistance line.
MACD on a double buy signal over here. We had a buy signal here and another one over here as well.
Volume has been brisk as well to the upside. You can see the strong volume over here.
And the trajectory and the trend of the moving averages remains very strong and remains upward.
Listen, I know the stock has extended quite a bit – it’s up a good 45% since the early parts of November, and that’s a lot of movement in about 2 1/2 months. But still, you know what? You go with the the trend, and the trend is saying that gold and gold miners are gonna be up.
Maybe take a look at some $40 or $42, $50 calls for March or April over in the next couple of months and see where the stock goes.
We do like Eldorado Gold. EGO is the symbol. Thanks so much for watching everyone, and I’l see you guys next time.
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