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« Yamana Gold Inc: Resumes Uptrend | Main | Trading: Explanatory Notes »
Thursday
Oct252007

Kinross Gold: Up 50% Since Our Summer BUY, Now Correction Expected

Kinross Gold has long been one of our favourite gold stocks, performing time and time again and providing us with good leverage to rising gold prices.

Kinross Gold: Up 50% Since Our Summer BUY, Now Correction Expected

During the summer doldrums, we gave two additional BUY signals on KGC, at $11.66 on the 29th June and at $11.48 on the 20th of August. As Kinross is now at $17.35, these appear to have been good calls on our part, as both BUY signals have now produced a profit of roughly 50% in just a few months.

However after such a great run up, Kinross should now take a breather and correct and consolidate a little. The rise onwards and upwards appears to have stalled just after $17.00 and we feel Kinross is going to begin its correction very shortly. As reader of The Gold Prices Newsletter may recall, we took profits on KGC and other gold stocks in late September, although maintained a strong core position in the stocks. We also changed the signal in our portfolio from BUY to HOLD/TAKE PROFITS at that time and we maintain this position.

We are looking for a correction of at least a few dollars in this stock, which could happen very quickly as we saw in the drop KGC has in August. After this correction we intend to purchase back the shares we sold, at a lower price. Trading the market, or even stepping out from time to time is not for every investor. We are still very bullish in the long term on gold and gold stocks so one can just pursue the strategy of buying and holding through the ups and downs, and focusing on the long term uptrend in gold. Nonetheless when we see an opportunity to trade the market we tend to take it and let our subscribers know what we are doing and why. You can subscribe to The Gold Prices Newsletter completely FREE of charge, just click here and enter your email.

When Kinross begins to look like its in a better position technically speaking, then we will change our signal to BUY once more. Until then, just keep an eye on this one, and wait a bit before purchasing a position and if you already own shares in KGC, in our opinion now would be a good time to take some money off the table.

Kinross Gold Corp trades as KGC on the NYSE and as K on the TSX.

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Reader Comments (2)

Re: Kinross

Why does the date show Oct. 25, 2007?

Please put the correct date so there is no confusion as to when you
are talking about doing a trade.

Thanks,
Larry

September 17, 2010 | Unregistered CommenterLarry Schwimmer

Larry,

The date is correct - that is when this article was written.

September 17, 2010 | Unregistered CommenterGold Prices

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