Monday, November 2, 2009
Goldcorp - The Bellwether Looks Mighty Bullish
Goldcorp (ticker: GG) is the bluest of the blue chip senior Gold miners. It is the Cisco of the Internet era. It is respected, widely owned, and not overly engaged in the hedging activities that plague other larger Gold miners (like Barrick). When I look at the chart of GG, I see a perfect correction and strong potential for an impending upside move.
When GG is looking bullish, this is good for the whole Gold sector. Here's a 14 month daily candlestick chart thru some of today's action:
GG is a buy right here and right now, but it could go a little lower (200 day moving average or slightly below it) before a bull thrust towards its all-time highs. To give you a longer-term perspective on where I think we are in terms of the "bigger" picture, here's a 10 year weekly log scale candlestick chart of GG:
Gold and Gold stocks are going higher - much higher. Things are all lining up well, though a day or two of panic spike thrusts downward in GG certainly could happen first (as has already happened with AEM and KGC). November thru January is a strong seasonal period for Gold and Gold stocks and this season will be no different. Whether the US Dollar goes up or down and regardless of whether the stock market goes up or down, the Gold sector is primed for a big move higher in my opinion. All surprises in Gold should be to the upside.