EGO (Eldorado Gold Corp) pulled back after hitting T2 for a 23% gain on Feb 14th. A break above the recent highs would likely bring prices to the next target (T3).
Like most of the mining stocks, AUY (Yamana Gold Inc.) has been consolidating for the last few weeks since hitting it’s second profit target for a 16% gain. The recent price action could be interpreted as a bull flag continuation pattern so watch for an upside break, especially a move over the recent highs, which would likely be the catalyst for a resumption of the uptrend and a move toward the T3 (final target) level.
ANV (Allied Nevada Gold) has been consolidating around the T1 level since hitting that profit target for a 40% gain on Feb 3rd. With negative divergences in place, we could see one more pullback below the T1 level before the next thrust higher toward T2 but longer-term, the charts remain bullish.
ALIAF (Alacer Gold Corp) is one of many gold & silver mining stock trades that recently hit one or more profit targets. Most of those trades were briefly mentioned as having hit a profit target but for archiving purposes, here’s the updated static chart along with a link to the live chart of ALIAF.
ALIAF was first added as a trade idea directly to the Live Charts page back on Dec 18th while at a key support level with bullish divergences in place. ALIAF was up approximately 42% from that point when it hit the T1 level on Feb 14th and after consolidating around that resistance level for the last few weeks, this junior mining could be poised for the next thrust higher toward the next target level, T2, which is the primary downtrend line OR the 2.65 level, whichever comes first.
As I’ve taken some time of from trading over the last few weeks, there are numerous trade ideas in need of updating. Some trades have hit one or more profit targets while others have exceeded their suggested stop levels or any reasonable stops, if none were suggested. As I update these trade ideas this week, email notifications will only be sent on time sensitive trades, such as those hitting a profit target or providing an objective entry or add-on at the time.
ANH (Anworth Mortgage Asset Corp) was added as both a typical swing trade setup as well as a Long-Term Trade/Growth & Income Trade Idea back on Dec 1oth and went onto to trigger an entry shortly thereafter on a breakout above the bullish falling wedge pattern. ANH hit all three profit targets, including the final target (T3) for a roughly 15% price gain plus dividends. This mREIT is now trading over 22% above the entry price while very overbought and trading at significant resistance as defined by the July & late Oct reaction highs in the stock. As such, the odds for a pullback are quite high at this time so consider booking full profits or at least raising stops, if still in this trade. As ANH has exceeded the previously posted final target, this trade will now be considered completed. Previous & updated daily charts below:
NLY (Annaly Capital Mgmt) hit the bottom of the T1 zone yesterday, trading as high as 11.30 before reversing. The charts still look constructive longer-term although a pullback or consolidation here is likely. T2 at 12.15 remains my final & preferred target at this time. Previous & updated daily charts below. Click here to view the live chart of NLY.
JO (Coffee Total Return Index ETF) has now hit the final target, T3 at 33.98, so consider booking full profits as the R/R (risk/reward ratio) no longer remains favorable. Today’s final target gives the JO trade a gain of 45.2% since the downtrend line breakout less than 2 months ago and a whopping 64.2% total gain on the trade for longer-term traders who took the original entry back Nov 6, 2013, which was literally the very day that JO bottomed in a vicious bear market that wiped out over 75% of the value of this Coffee ETN. That original entry at the lows was based off both the weekly chart (making a case for a longer-term bottom) as well as the 60 minute chart (for timing the entry), a great example of using multiple time frames on a trade. The original notes and charts can be viewed by clicking the link above. Updated daily static chart shown here or click here to view the live chart of JO.
As mentioned last week, I booked profits on the bulk of my gold & silver mining stock positions and even closed some additional mining trades out this week, virtually closing out all my exposure to the sector (save a few small long-term positions). Since hitting my second target zone (T2 on the daily chart) a week ago today, GDX has stalled out with prices contracting within a bearish rising wedge pattern as shown on the 60 minute chart below. The fact that the mining stocks have made a very powerful & relentless advance, gaining about 30% since the well-timed post on Dec 31st titled Time To Start Buying Gold , while also forming a bearish rising wedge pattern, complete with negative divergence on the MACD & RSI, greatly increases the odds of a near-term correction in the sector. Yes, the momentum in the mining sector is very strong & yes, the miners could just power through this resistance zone & shorter-term bearish pattern but trading is all about the R/R (risk to reward ratio) and at this time, the R/R is no longer clearly skewed to the bullish side IMO.
Longer-term I continue to remain bullish on gold, silver and the mining sector but as a more active trader, my preference is to book profits and protect my gains even if that means losing out on additional gains, should the sector move sharply higher before any meaningful pullback. The live charts on all of the mining stock trade ideas, which can be found on the Live Charts page, were updated earlier this week but I still haven’t found the time to remove those trades that have hit their final targets from Active Trades category. Those trade should be moved to the Completed Trades category soon. I will also review the remaining active trade for objective entry levels, should we get a half-decent pullback in the mining stocks.
Have a great weekend! -RP
I’m continuing to keep things light for now as the overall technical picture for the broad market (S&P 500) is not as clear as I’d like it to be. However, with both the Nasdaq 100 Index as well as the important financial & energy sectors currently backtesting their recently broken uptrend lines as shown below, adding back some short exposure here with the appropriate stops in place does seem objective. I’ve recently updated all of the live charts for the gold & silver mining stock trades as well as the US Indices. Those charts are accessible via the Live Charts page. Static charts on those mining stocks that recently hit a profit target will be posted asap for archiving purposes although most of those trades were updated in the recent post titled Reducing Exposure to the Gold Mining Sector last week.