GG Goldcorp Daily Chart; Ascending Triangle; Potential Island Reversal

The ascending triangle pattern is interesting for gold miner Goldcorp. It is a bullish pattern with the break-out base line at 9.70 and low price at 8.50. Thus, the vertical side of the green triangle is 1.2 points. If GG takes out the 9.70 level, the 10.9-11.0 resistance will serve as an upside target.

GG gapped-down in late October from 10.5 to 9.7 so price has been sitting on an island for the last 6 weeks. If GG should drift higher to 9.7 and then suddenly gap-up to 10.5 that would be an island reversal pattern.

The ADX line shows that the downward move in Goldcorp was a very strong trend lower in August and September but the strong trend petered out over the last couple months hinting at bottoming activity. After the late October drubbing, the positive divergence bounced price back up to that 9.7 ceiling but that was it. During November, price staggers sideways like a Times Square drunk on Saturday night.

Keystone bot GG on the long side on Friday. If price falls below 9.15 the trade will be ditched. The idea behind the trade is that the ascending triangle will play out with price coming up to 9.70 and then breaking-out higher. Price is below the moving averages and needs a mean reversion higher. Keystone gives GG a whirl; a lot will depend on the direction of the US dollar. 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.