Goldcorp is one of the oldest and largest names in the precious metals sector. They’re a unique player because they mine for gold, silver, copper, and zinc – similar to their competitor Freeport McMoran (but without with the oil/gas business).
Over the past few years, their chart has looked just awful. When gold fell sharply, it took some of the best mining companies down with it, Goldcorp included. Most of these companies are now “unhedged” to metal, meaning they’re performance is solely tied to the metal’s performance.
Recent interest in gold is reflected in strong price appreciation for the associated companies. Gold often goes on a nice run for weeks, if not months, this could be the beginning of such a move. The metal is up more than 15% for the year.
Goldcorp’s chart is strong, and while it is well off all-time highs, the turn up is quite noticeable. The MACD is near a buy signal, and higher lows/higher highs in the chart tell us there could be more upside to come. Note the solid relative strength on the top pane, which also tells us higher prices are in the near future. Momentum indicators are heated here so we may see some backing and filling, but any pullback would be a sign to get long.
Goldcorp (NYSE: GG) Video Chart Analysis
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TGoldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, silver, lead, zinc, and copper. Its principal mining properties include the Red Lake, Porcupine, Musselwhite, and Éléonore mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin mine in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada.