Kirkland Lake Gold Ltd. (KL) is another mining name that caught my attention this morning. Prices have been strong this month and we have broken out to new highs for the move up. Let's check out the charts and indicators to see if there is more power left in this bull.
In this daily bar chart of KL, below, we can see an uptrend from the February low with prices nearly doubling. KL is above the rising 50-day moving average line and the bullish 200-day average line. The 200-day line was successfully tested in September, October and November. The daily On-Balance-Volume (OBV) line shows a slow rise from February to early August and then a more dramatic rise from September. This rising OBV line tells us that buyers of KL have been more aggressive recently and this helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero line.
In this weekly bar chart of KL, below we can see an impressive rally from only $2 back in early 2016. Prices are above the rising 40-week moving average line. The weekly OBV line has been strong for the past year and the weekly MACD oscillator just crossed to the upside for a fresh outright go long signal.
In this Point and Figure chart of KL, below we can see an upside price target of $37.50.
Bottom line strategy: risking below $22, traders could approach the long side of KL look for gains to the upper $30's.
