From time to time readers send me questions about stocks they are interested in. I try to answer every email on a timely basis. Sometimes, I just send my thoughts back to the subscriber and other times, I will write about it for everyone.
The other day one reader asked me about Kinross Gold Corp ( KGC) . Let's check out the charts and indicators.
In this daily bar chart of KGC, below, we can see that the price of KGC was cut in half in just a few short weeks back in February and March. Prices quickly recovered and went on to triple from their nadir. Prices are trading back above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows strength up until early August and shows a correction lower the past five weeks. The Moving Average Convergence Divergence (MACD) oscillator has also corrected lower in the past five weeks, but it is still above the zero line and could easily reverse to the upside if KGC rallies.
In this weekly bar chart of KGC, below, we went back five years to show that prices broke out of a major long-term base pattern. The weekly breakout over $6 was very important, as was the retest of the $6 level in June. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a long and steady rise over the past few years, telling us that more aggressive buying has been going on for a long time and is not just an overnight development. The MACD oscillator is still bullish but close to a possible take-profits sell signal.
In this daily Point and Figure chart of KGC, below, we can see a nearby upside price target of $9.39.
In this second Point and Figure chart of KGC, below, we used weekly close only data. Here the chart is projecting a target in the $14-$15 area.
Bottom line strategy: Traders could go long KGC at current levels, risking a close below $8 for now. The $15 area is our next upside price target.
