As gold continues to surge higher ignoring commentators who think it should correct, smaller mining names are attracting buyers. Eldorado Gold (EGO) fits this category.
This chart of EGO, above, shows a rough rounded bottom evolving since September. I said rough because in January of this year, EGO gapped lower and made a new low for the move down. On the plus side, volume did not expand as prices broke to new lows. Prices have since rallied up and over the 50-day moving average line and the slope of the line is inching up. EGO has also cleared the 200-day average. The On-Balance-Volume (OBV) line is rising erratically but it is rising. And the Moving-Average-Convergence-Divergence (MACD) oscillator is bullish -- rising and above the zero line.
This longer-term chart of EGO, above, is frankly not all that impressive, but you have to start somewhere. This could be the first week that EGO closes over the still declining 40-week moving average. The OBV line is flat on this timeframe and the MACD oscillator is slowly coming back toward the zero line. Not wildly bullish -- sorry, but not bearish either.
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If you just looked at the chart, you would think this company sold clothing.
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