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« Agnico-Eagle Mines Limited: Bought Today | Main | “Get Your Gold the Hell Outta Here!” »
Sunday
Jan242010

Agnico-Eagle Mines Limited in the Buy Zone

AEM Chart 23 Jan 2010.JPG

Over the past six months Agnico-Eagle Mines Limited (AEM) has moved violently between the $52.00 level and about $74.00 per share. These movements offer investors the opportunity to add to their portfolios by buying a few more of their favorite stocks or by venturing into the more volatile options arena where a greater amount of leverage is available.

From the above chart we can see that AEM has formed two lower highs since hitting $74.00 which is worrisome for us as we believe this stock is once again undervalued, so thats a bit of a negative. However, the $52.00 level has acted as a support to AEM recently and we hoping that it will hold once again. The technical indicators are almost on the floor and suggest that AEM is now oversold so we are looking for a bounce around now followed by a reasonable rally. As we mentioned when writing about Silver Standard there are a number of political considerations to add to the pot, such as President Obama's stance regarding the banks. Should the banking sector continue to fall bringing the remainder of the market with it then the dollar could be the beneficiary and not gold and silver. Thats a chance that we may have to take but on balance we will probably move early next week.

Have a sparkling week.





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Reader Comments (10)

Does your crystal ball say that gold may rise a bit from here and then hit the low again and then resume the rise till May?
;>)

Did you read Richard Rhodes' comments on US$ via StockChart's most recent newsletter?

It was not really a surprise to me that the market declined around Jan. 20 (option expiry week). Based on my memory, this is a tradition.

January 25, 2010 | Unregistered Commenterep

I have always liked AEM, but always resented the very low dividends paid. So, I guess that the only money to be made would be in the price swings, as you indicate. However, in looking at the price chart, there is a question in my mind as to whether there is an unfavorable cross-over in the cards in the near future. What say you?
John

January 25, 2010 | Unregistered CommenterJohn Ell

Greater amounts of leverage are also available in the purchase of long term warrants offered by Agnico-Eagle(AEM.wt.u)

January 25, 2010 | Unregistered CommenterWayne

Team,

We have bought today, both the stock and some Call Options - will post shortly.

January 25, 2010 | Unregistered CommenterGold Prices

Dear Gold and Silvers Prices newsletters Editors,

There is much talk these days about a soaring dollar and
and that Platinum is now the new Gold of interest and that Gold itself is losing its luster.
If this be the case would it not be in your interest and those of your readers to have a Platinum newsletter as well of those you already produce??
After all Platinum is worth more than Gold and there nevr seems to be enough focus put on its demand!!
Sincerely
Doug

January 25, 2010 | Unregistered CommenterDoug

Team,

We are expecting a good year for this sector and will try and map it out shortly.

We are also aware of the warrants on AEM but have yet to trade them.

Platinum is something that we don't do, cant enough time to do justice to it

January 25, 2010 | Unregistered CommenterGold Prices

ep,

Thanks for this, Jim Sinclairs site is always worth a visit, we have quoted him on a number of ocasions.

January 26, 2010 | Unregistered CommenterGold Prices

I'd take a look at the Point and Figure chart on AEM.TO on StockCharts.com which suggests a bearish figure of $40.00 for AEM from your $52.00 buy.

The price of gold is also showing a bearish $930 on the point and figure chart for the $Gold index, while $Silver contract is a bullish $26. $Plat is bearish at $1410, so it appears the metals could be in for a bit of a struggle over the next period.

How do you feel about Point and Figure charts as indicators of future action?

January 26, 2010 | Unregistered CommenterGeorge

Merv is into P&F chart.
http://preciousmetalscentral.com/subscriber/weeklycommentary.pdf

According to him, gold intermediate term has turned bearish too. Hmm...

As far as I am concerned, the price objective from StockChart P&F charts quite often is not reliable. They can change on a dime.

January 26, 2010 | Unregistered Commenterep

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