While the stock markets in the U.S. are closed, Seabridge Gold (SA) (SEA on the Toronto Exchange) is trading north of the border today. I often look at the mining names to get a lead on the gold bullion market. The reason goes like this - if you think the price of gold is going to go higher and you are not 100% sure of the timing then you should buy a mining company and not gold futures or options.
SEA is one gold mining company with a bullish-looking chart and indicators. Let's check out the charts and indicators. Eh?
In this daily bar chart of SEA, below, we can see an irregular uptrend the past year. SEA is showing higher lows in April, May, August, September and November. Higher highs are in February, May, June, July, August, September and October.
SEA is trading between the cresting 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line shows strength from February, telling me that buyers of SEA have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a cover shorts buy signal.
In this weekly bar chart of SEA, below, we can see the price action of the last four years. Prices look like they have formed a large saucer-like pattern since early 2016.
SEA is trading just above the rising 40-week moving average line.
The weekly OBV line shows a positive trend from early 2016 and the MACD oscillator is above the zero line but in a take profits mode for now.
In this long-term Point and Figure chart of SEA, below, we can see a very large potential base pattern. The first upside price target measures to $34.50. A trade at $21 will be a large double breakout.
Bottom line strategy: Traders and investors who are attracted to the precious metals should check out SEA in Toronto or in the States. Buy it lightly here and get aggressive above $21. Risk below $14.50 Canadian.