Chart of the Day: Important Base for EGO as Gold Shines Bright Again
It seems a recent pullback to huge support has been completed.
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Gold as a commodity has been a strong performer for years, but there are times when a gradual slide lower is required before the next step up. Recently the metal moved from highs in the 4,500 area but found some good support at 4,000, several times in fact. A solid rise, nearly 10% over the past 10 days has lifted several gold miner names including Eldorado Gold (EGO), which has seen a strong move above resistance over the past few sessions.
The long base in EGO is important, as we have mentioned prior that the “longer the base, the higher the space” (as technical analyst Louise Yamada says). No question this stock has further to go, as this breakout above the April highs looks very sturdy. The MACD is on a strong buy signal again, while money flow (bottom pane) shows robust buying in this gold miner.
Relative strength has improved and continues to move higher. Nothing better than a strong RSI with a stock making monthly highs. The candles of course tell us strong bullish, they are blue and the stock is now trading above the upper Bollinger band.
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At the time of publication, TheStreet Pro Portfolio was long EGO.
