Alamos Gold (AGI) is a Toronto-based intermediate gold producer with diversified production from three operating mines in North America. AGI is not a household name but I must say they have an attractive set of charts and indicators.
Let's check them out.
In this daily bar chart of AGI, below, we can see that the price of AGI has moved in a wide sideways pattern the past 12 months. Prices are now up at the upper end of a $6.50-$9.00 range. AGI is trading above the rising 50-day moving average line and above the rising 200-day line. The trading volume has increased the past three months as prices have advanced.
The On-Balance-Volume (OBV) line has climbed the past year even as prices have moved sideways - this is very bullish to me as it shows a continued pattern of aggressive buying even during pullbacks.
The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of AGI, below, we can see a large saucer bottom pattern the past two years. Prices are trading above the rising 40-week moving average line.
The weekly OBV line has been positive the past three years. The weekly MACD oscillator has recently crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of AGI, below, we can see a price target of $9.80.
In this weekly Point and Figure chart of AGI, below, we used a five box reversal filter. Here the software suggests a target in the $14 area.
Bottom line strategy: AGI may not really take off to the upside until the US Dollar starts a sustained decline - maybe in the first quarter of 2023 - but it is very interesting how well the stock has done despite a strong dollar. Traders should look to be a buyer closer to the $8.25 area in the weeks ahead.
