NovaGold Resources (NG) is one of our "picks for 2016," and a year-end update seems appropriate.
NG made its lows back in 2013 in this chart above. The On-Balance-Volume (OBV) line has been rising slowly for two years, suggesting quiet accumulation. Prices are poised to breakout beyond their 2015 highs. Judging by the stochastic indicator, NG is overbought. However, an overbought condition early in a bull move is typical, and tells you that investors are buying despite the overbought reading.
This is a point and figure chart of NG, above. Point and figure charts date back to the 1880s in the United States, and they ignore volume and time and just focus on price changes. NG is poised to break its downtrend and breakout on the upside with a "print" at $4.75. Stay tuned.
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Give your portfolio some credit and see which of these materials companies gets your interest: BHP Group, Dow Inc. or LyondellBasell.
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