My series on precious metal stocks continues today with a look at Agnico Eagle Mines Ltd. (AEM) . So far we have covered Franco-Nevada (FNV) , Newmont (NEM) , and SSR Mining (SSRM) , which have seen some big gains from their March 2020 lows. Let's check out AEM now.
In this daily Japanese candlestick chart of AEM, below, we can see that prices more than doubled from their March low to their September high. Prices have been correcting the past five months but the pattern of higher lows continues from June to November and now early February. AEM still needs to make a higher high to get the upside cooking. A rally and close over the early January high is a good start. Prices have been trading through and around the popular moving averages but could soon establish itself above these indicators.
The On-Balance-Volume (OBV) line shows weakness from the middle of September to a low in November. So far the OBV line is "holding its own" and it will not take much volume to turn the trend positive. The Moving Average Convergence Divergence (MACD) oscillator is just below the zero line and thus very close to a new buy signal.
In this weekly Japanese candlestick chart of AEM, below, we can see the longer-term uptrend. Prices are close to closing above the rising 40-week moving average line.
Trading volume has been steady and the OBV line too. The OBV line has improved from its November low and is not far from making a new high.
The MACD oscillator is on the zero line but narrowing towards a possible new buy signal in the weeks ahead.
In this daily Point and Figure chart of AEM, below, we can see a potential upside price target in the $85 area.
In this second Point and Figure chart of AEM, below, we used weekly close only price data with a traditional even dollar scaling with a five-box reversal. Here the software is projecting the $192 area as a possible price objective. Not bad.
Bottom line strategy: Aggressive traders could go long AEM on available weakness risking to $61 for now. Add on strength above $76. $100 and then $200 are our potential price targets.
