Another Precious Metal Stock Is Emerging From a Base Pattern

Here's how to play this name very familiar to precious metals bulls.

Author:
Bruce Kamich
Publish date:
Apr 14, 2023 8:03 AM EDT

Coeur Mining Inc. (CDE) is a name that is well known to long-time precious metals bulls. (The stock traded in the $300 area on a split-adjusted basis in the late 1980s.) CDE has been making a base pattern the past year and now prices are finally breaking out on the topside.

Let's check the charts and indicators.

In the daily bar chart of CDE, below, I can see that the shares rallied to the $4.25 area a number of times over the past year. This time prices are not retreating. CDE has made a new high for the move up and the slope of the 50-day and the 200-day moving average lines have turned positive.

The trading volume has been more active since early March and the daily On-Balance-Volume (OBV) line has turned upwards telling me that buyers of CDE are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

In the weekly Japanese candlestick chart of CDE, below, I see a positive-looking setup. Prices have based after a long decline. The shares are now trading above a rising 40-week moving average line.

The weekly OBV made a long decline but its recent strength looks like a true change of trend. The MACD oscillator is finally above the zero line in buy territory.

In the daily Point and Figure chart of CDE, below, I can see that the software is projecting an upside price target in the $6.75 area. Not a small percentage gain if it works out.