Gold has been rallying since the end of May when we last wrote about it the yellow metal, just in case you have been on an island in the Caribbean with no internet connection. We have been positive on Kirkland Lake Gold (KL) , Agnico Eagle Mines (AEM) and Newmont Goldcorp (NEM) for a while now, but some Real Money readers have begun to ask about more speculative names. Some people may think this is a warning sign but I don't feel that way just yet.
Here are a few names that look attractive at this juncture.
In this daily bar chart of Alamos Gold Inc. (AGI) , below, we can see a low in December followed by a rally, a correction, and another move higher. Prices are above the rising 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line shows a positive trend as does the Moving Average Convergence Divergence (MACD) oscillator.
In this daily bar chart of First Majestic Silver Corp. (TSE:FR) (NYSE: (AG) ), below, we can see a large base pattern from August to June before the upside breakout. The moving averages are pointed up as so is the OBV line.
In this daily bar chart of Golden Star Resources Ltd. (GSS) , below, we can see a base similar to FR. An upside gap for the breakout. Bullish moving averages and the OBV line too.
Ivanhoe Mines (TSE: IVN) (OTC: (IVPAF) ) is listed in Canada and we have a bullish chart pattern visible. A breakout in February and another breakout to the upside in June. Price is above the rising moving average lines.
The OBV line suggests aggressive buying and the MACD oscillator is above the zero line.
In this chart of Kinross Gold (KGC) we can see a long base formation followed by an upside breakout in early June. The moving averages have turned up. The OBV line is rising telling us that buyers are acting more aggressive.
NovaGold Resources Inc. (NG) , below, shows us a sideways consolidation pattern and an upside breakout. Some near-term consolidation is possible before further gains.
In this weekly bar chart of NG, below, we can see a much bigger base pattern. A strong weekly close above $7 is the next key chart point.
In this daily bar chart of the Canadian gold miner Semafo Inc. (TSE:SMF), below, we can see a rally from early December with the "afterburners" kicking in in late May. The moving averages have a bullish slope, the OBV line is rising and the MACD oscillator is turning up again.
Lastly we have a chart of Sandstorm Gold Ltd. (TSE:SSL) (NYSE: (SAND) ), below. Here the rally started in November and the last four months or so have been a sideways consolidation pattern. A strong close above $7.75 should start the next leg higher.
Bottom line: I consider these names (above) to be speculative, so do some homework. Keep positions small and set a stop loss point when you go long. Please.
