Agnico Eagle Makes a Golden Line on the Charts
The precious metals company just keeps bending upward.
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I reviewed the charts of the big precious metals company Agnico Eagle Mines Ltd AEM on Nov. 22, 2023, where I wrote that "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."
With AEM trading at $65 and gold holding above $2,300, another review of the charts is in order.
In this daily bar chart of AEM, below, I can see that prices have reached my $63 price target. Prices have been consolidating gains in May and June. AEM is trading around the cresting 50-day moving average line. Trading volume has weakened in the past three months. The On-Balance-Volume (OBV) line shows strength since February and a leveling-off in recent weeks. The Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero-line.
In this weekly Japanese candlestick chart of AEM, below, I looked at the past four years. Prices have made a major base pattern. AEM trades above the rising 40-week moving average line. The weekly OBV line shows strength the past three years. The moving average convergence-divergence oscillator is above the zero-line but correcting.
In this daily Point and Figure chart of AEM, below, I can see a potential price target in the $72 area.
In this first weekly Point and Figure chart of AEM, below, I can see a price target in the $74 area.
In this second weekly Point and Figure chart of AEM, below, I used a five box reversal filter. Here the software suggests a price target of $141.
Bottom line strategy: What could make the share price of AEM double from here you ask?
Gold prices soaring higher, of course, is the answer.
What could cause the price of physical gold to soar? Westerners buying? Sure, but I think that some sort of "currency event" is the more likely thing to be on alert for.
Do I have any special knowledge of the currency markets - absolutely not. But a prepared trader can profit by anticipating potential scenarios. Just saying.
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