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  • AUY Smashes Earnings and Gold Ready to Turn?

    Posted on March 5th, 2009 No comments

    As I already stated before, my entrance into AUY wasn’t the smartest. Instead of taking a loss I’ve held out for the earnings and AUY has proven to be worth the wait. As oil has fallen, miners are going to start reaping the gains of lower costs and higher gold prices. Yamana Gold is the first company to show the stars and stripes of this bullish mining sector. The market expected 4 cents EPS and Yamana delivered 25 cents EPS. Now how’s that for a blow out?

    Another major factor in the miners outcome is the precious metal Gold. Here is a chart of GLD…

    Notice the channel gold has been trading in for the past 2 months.
    Notice the channel gold has been trading in for the past 2 months.

    I’ve very clearly identified the trading channel for Gold. A few things I didn’t add in there are bollinger bands and the 45 day Moving Average. Today marks an incredibly interesting and pivotal moment for Gold. At the very same time our bollinger bands, our 45 moving day average, our 61.8% retracement level, stochastics are oversold, and the bottom of our trading channel all meet together. In simple terms, the price of gold has reached the bottom target on every single indicator that I watch closely. I haven’t seen so many indicators pile up in one single spot at the same time. If I were to take a guess, gold is definitely going to have a positive day on March 5th, my target is about $925.

    I’d buy at $905 with a stop loss around $898.  Happy trading!