Wednesday, April 3, 2013

IAG IAMGOLD Daily Chart Downward-Sloping Channel

IAG continues to base and set up for a recovery. The downward-sloping channel is in play. Note that price is fighting for the 20-day MA at 6.87; a close above here is very bullish. The 20-day MA has been under the 50-day MA for the last few months and the IAG bulls should reverse this downward trend. The 20-day MA is now curling up. The positive divergence in February created the bounce but the MACD line and money flow wanted to see another matching or lower low. So a move to 6 remains on the table. There is a hair of a gap at 6.5 which serves as another support target. Keystone's 80/20 rule says that 6.2 should lead to 5.8 so that cannot be ruled out.

 The weekly chart is setting up with positive divergence as well. Patience is required over the coming days and couple weeks as price bases but IAG should head higher from April forward. Keystone is currently long IAG. A potential method to the long trade would be to buy now, buy at 6.5, buy at 6 and buy at 5.8 where IAG can bounce placing the final base at any of these levels. A target of 8 to 10 is the current projection for summer time. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

 Note Added 1:35 AM:  IAG dropping today like all gold, silver and miner charts. The Credit Suisse downgrades likely creating the damage. IAG now at 6.37 working in the 6.2-6.5 zone.
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3 comments:

  1. AnonymousApril 3, 2013 at 12:43 PM

    Ok, who didn't buy at 6.50? Bad dog!

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  2. Keystone SpeculatorApril 3, 2013 at 1:27 PM

    Yep Anon, it is sliding, the gold, silver, miner sector getting hit hard likely on the Credit Suisse downgrade. IAG now printing at lows today at 6.36. Next level to watch 6.20. The downgrades may do the PM sector a favor creating a wash out move this week.

    ReplyDelete
  3. AnonymousApril 16, 2013 at 3:56 PM

    How depressing, so far down. Isn't that when it usually turns around? Any chance 4.80 will hold or should I write off the 21%? I averaged down and I am at $6.23. Nervous as an ice cream cone on it's way to hell.

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