Eldorado Gold Corp. (EGO) is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada and Greece. A rally in the stock has been underway since early November and the question now is whether it will continue and what price targets are "readable."
Let's check the charts and indicators for the answers.
In the daily bar chart of EGO, below, we can see that the shares made a base from July to early November and then started moving to the upside. Prices are trading above the rising 50-day moving average line and above the declining 200-day line.
The trading volume has been declining slightly from early August. The On-Balance-Volume (OBV) line moved sideways from late July to early November before showing some upside improvement.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line but the oscillator has narrowed and could soon cross to the downside for a take profit sell signal.
In the weekly Japanese candlestick chart of EGO, below, we went back four years to get some additional perspective. Prices have improved. EGO is trading above the 40-week moving average line but the slope of the line is still negative. The shares have declined from around late 2020 to retest the lows of early 2020.
The weekly OBV line has declined from around August 2019 to July 2022 before starting a move higher. The MACD oscillator has improved too and is very close to crossing the zero line for an outright buy signal.
In this daily Point and Figure chart of EGO, below, we can see that the shares reached an upside price target in the $8.38 area.
In this weekly Point and Figure chart of EGO, below, we can see an upside price target in the $9.62 area.
In this second weekly Point and Figure chart of EGO, we used a five-box reversal filter. Here the chart suggests a price target in the $13.29 area.
Bottom-line strategy: Looking forward to 2023 I believe a much stronger rally in gold and silver is likely to unfold. The issue to me, however, will be navigating the twists and turns in the months ahead. A rebound rally in the U.S. dollar could generate a correction or some other unforeseen events. A decline in the first quarter of 2023 is likely to be a buying opportunity. In the short run, EGO could extend its current advance into the $9.00-$9.50 area.
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