Chart courtesy of Stockcharts
After hitting a resistance level and dropping multiple times, we have noticed that there may now be an ascending triangle formation appearing on Kinross Gold Corp. (KGC)
As one can see from the chart above, KGC has reached the level just below $21 twice and fallen back sharply, and now it is there again, closing today at $20.57.
Of course if KGC breaks up and out of the ascending triangle formation then it could go on a run, however we think that it is likely Kinross could break down out of this channel, given that there does not appear to be any fundamentals that could fuel a break up. Gold and gold stocks are looking slightly overbought, not to the point where we want to dump every share we own and go short, but enough to stop us from adding to any of our gold holdings at the moment and make us think about insurance polices and the possibility of short term trades. (See recent SLW post).
We will see how this one pans out, but we will certainly not be adding to any gold positions at the moment, and would not be surprised if KGC falls below $18 before it breaks the $21 resistance.
Kinross Gold Corporation trades on the Toronto stock Exchange under the symbol of ‘K’ and on the New York Exchange under the symbol of ‘KGC’ Kinross has a market capitalization of $14.29 billion, with average turnover of 4.99 million shares and closed today at $20.57.
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