Seabridge Gold (SA) is due to report earnings results Tuesday. Let's check out the charts and indicators ahead of the numbers to see if SA is ready for lift-off.
From time to time I get emails from Real Money readers on whether gold is "finally ready" to make its move. Besides looking at the price of bullion it is important to see what the mining companies are doing. Strength in SA could be an important clue to what gold may do later in 2019.
In this daily bar chart chart of SA, below, we can see that prices bottomed in April/May and they've established a pattern of higher lows since then. We can also see higher highs, too.
A new high for SA in the weeks ahead could give us a significant upside breakout that could foreshadow strength in bullion. SA is above the rising 200-day moving average line but prices have been testing the rising 50-day average line this month.
The daily On-Balance-Volume (OBV) line shows a rise from September signaling more aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late December and it is still above the zero line.
In this first weekly bar chart of SA, below, we can see the price action going back to 2014. A weekly close above $16 would be a major upside breakout.
Prices are above the rising 40-week moving average line.
The weekly OBV line is steady the past two years and the weekly MACD oscillator is bullish.
In this second weekly bar chart of SA, below, we can see the price action going back to 2004. A weekly close above $16 will be a major three-year upside breakout. A longer-term price target of $25 is possible.
In this Point and Figure chart of SA, below, we can see that a weekly trade at $15.31 will be a breakout on this chart. An upside price target of $17.33 is being projected.
Bottom line strategy: Despite the up and down swings in bullion, and the zigs and zags of the U.S. dollar, SA has been moving up in recent months. SA may experience some short-term softness but the longer-term picture suggests higher prices in the second half of 2019.