What Do Agnico Eagle's Charts Tell Us About the Future of Gold?

Agnico Eagle Mines Ltd. AEM is one of the biggest gold producers in the world. What are investors in gold who have a vision of the future and a bullish forecast for the metal doing with AEM?

Let's drill down on the charts and indicators.  

In the bar chart of AEM, below, I can see that the shares have made a bottoming pattern since June. Prices have a "neckline" around $51 and a strong close above $51 should generate an upside breakout.

The trading volume has been more active since early September telling me that investors are more interested.  The daily On-Balance-Volume (OBV) line has drifted sideways the past six months. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line. 

In the weekly Japanese candlestick chart of AEM, below, I see two trends. First is the downtrend into a low in September 2022. The second trend is a sideways trend from early 2022.

I do not expect this sideways move to go on forever so let's look for levels that signal a breakout. A rally above and weekly above the 40-week moving average line just above $50 will help. Continued firming in the weekly OBV line will be good.

The MACD oscillator moving up to cross above the zero line will definitely be a positive signal.  

In this daily Point and Figure chart of AEM, below, I can see an upside price target in the $56 area. A trade at $51.02 will refresh the uptrend. 

In this weekly Point and Figure chart of AEM, below, I used a five-box reversal filter. Here a trade at $51.02 will be positive and a price target of $63 is shown. 

Bottom-line strategy: Traders could go long AEM on a close above $51 on increased trading volume. Risk to $45. The $63 area is my price target for now. A strong move up in AEM could foreshadow an upside breakout on gold futures above $2,100.

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