Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Inflation: Is it worth the gamble? | Main | Gold Rocked by Central Bank Selling »
Thursday
Jul262007

Agnico Eagle: Correction Underway

In May we wrote that Agnico Eagle was set to go higher and indeed it has done just that, making a technical breakout after some good news before getting past resistance at $42.00 and challenging its all time high.

Agnico Eagle: Correction Underway

We have covered Agnico Eagle extensively throughout this rally and we have said that we thought that a correction was due. Now the correction seems to be beginning but as we have said in previous articles, we are going to ride this one out and hold through any pullback in the stock.

Agnico Eagle is currently trading below $42.00, a level we consider as a support so it would suggest that Agnico is set to fall a little further. However, we could see Agnico Eagle bounce back to above $42.00 and then consolidate above and on this support before embarking on another rally.

The technical indicators suggest that there is a little more downside left in the stock, as the STO and RSI can fall still further and on the MACD the black line has broken down through the red, giving us a bearish signal.

We think that AEM will spend a bit more time on the decline and consolidating, ideally holding the $42.00 level. After this the stock should go on another great rally which could be signalled by the 50dma breaking up through the 200dma, so keep and eye on the moving averages.

As always we will keep our readers fully updated on the progress of this gold stock and we still have it as a BUY in our gold portfolio. Agnico Eagle trades as AEM on the NYSE and as AEM on the TSX.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>