3SOF

to me this picture doesn't look so good....
as I said I'm relatively new to TA so I would appreciate your comments on the following picture:




http://www.wistudat.net/stock/gg2.png

Thanks for your posts nikao, I see you're studying technical analysis. I'm a student of the subject too.

Technical analysis is more of an art than science and two different people will probably see different things on the same chart.

In the case of GG I prefer to look at the bigger picture. I see the stock has relative strength in it's sector and has just breakout a resistance level, which is now support ($15.77).

As long as the stock closes above that level ($15.77) one should believe the breakout will extend the rise at least until the technical target of the breakout is reached around $18.69.

Good luck for your learning process, you should try Metastock, a powerful TA software I use for many years.

Quote from: David Randolph on July 14, 2005, 07:18:28 AM
Thanks for your posts nikao, I see you're studying technical analysis. I'm a student of the subject too.

Technical analysis is more of an art than science and two different people will probably see different things on the same chart.

In the case of GG I prefer to look at the bigger picture. I see the stock has relative strength in it's sector and has just breakout a resistance level, which is now support ($15.77).

As long as the stock closes above that level ($15.77) one should believe the breakout will extend the rise at least until the technical target of the breakout is reached around $18.69.

Good luck for your learning process, you should try Metastock, a powerful TA software I use for many years.

thanks for your comments. Im indeed studying TA (am reading the Master Swing Trader right now). The thing you mention that 2 people can see 2 things in a chart is exactly the thing im finding hard to master; what picture is the right to see in a chart?!

I'm now following some stocks to see if I get the pictures right.
As for MetaStock, great tip.. but i'm afraid 500$ is a little to much for me now. Im only investing for 2 months now and with a (very) small amount of money.

As for this chart, i did indeed see the resistance wich is now support, but based on my picture I fear a sideways movement for the near future.. But of course I hope you are right (for all the people who are in this stock with you )

GG said it will release results on August the 15th: Goldcorp to Release Second Quarter Results August 15th

The stock came down over the past two sessions, but it held support at $15.16. The Gold price did rebound a bit from a dollar induced short term fall.

I guess GG's uptrend will resume after this consolidation phase, technicals and fundamentals back this stock.

It wasn't easy, but GG held the $15.16 support on close, after a down open. I'll keep the stock.

GG takes gold out of the ground at $60 an ounce, it just won't go down ! Technically speaking, yesterday we've had a bullish engulfing candlestick pattern with higher volume, so the short term trend was reversed from bearish to bullish.

I can't wait to see GG decisively break the $16 area (strange expression, yes, I can wait), I believe it's not a matter of will, it is a matter of when.

The company will release the second quarter results on August 15th, maybe then ...

*DJ JP Morgan Cuts Goldcorp To Underweight From Neutral >GG   

07/20/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)


(END) Dow Jones Newswires

07-20-05 0633ET

Copyright (c) 2005 Dow Jones & Company, Inc.

This Downgrade By JP Morgan is ridiculous. I wonder what kind of motives these brokers have to actually rate GG a sell with their fundamentals and this beautiful technical picture. ANy thought's on what these analysts are up to Mr. Randolph? I would say some shady shenanigans going on behind the scenes like massive buying and accumulation by the same swine that downgraded GG 

Hi Armoredsaint,

I am not holding GG so I am not familiar with the company specifics. But I am heavily exposed in gold (GSS and RANGE).

Many of the Gold analysts are short term bearish and long term bullish on gold. This might be the reason for J.P. Morgans downgrade.

I think J.P. Morgan are out of sync with the gold market. It is correct that the gold price has been falling but there seems to be good support at 420 and I would expect a reversal from here. David has defaulted on his technical analysis on the gold market but I am sure he will deliver with a little encouragement.

David pleeeeeze 

Just to elaborate on the connection between the gold price and the gold stocks:



I think it is clear that GG tends to exaggerate the movement of gold to the upside and downside even though it has broken away from the gold during the last two months. That is probably due to GG's fundamentals or what David calls strength!

Now if you expect gold to go up with 5% it would be a fair assumption that GG (or GSS and RANGE) would go up with 15% to 20%.   

Mike

Thanks for your analysis Michael. It's still not today I'll make an analysis on the Gold price, but I'll make it.

I won't even consider that downgrade from JP Morgan, if they were neutral on GG they were wrong and they decided to be even more wrong by downgrading the stock.

Gold price is up a bit today, on dollar weakness and GG is just marking time before decisively breaking the $16 barrier. I'm a long term bull in gold and gold stocks.

Mr. Randolph
What are the indicators for GG as it keeps bumping up against resistance at 16? Is it bullish to keep bouncing around here or bearish? Is there a timeline where a decision has to be made for this to break hard one way or another or could it keep meandering here indefinitely? Thanks

Thanks for your question armoredsaint.

QuoteMr. Randolph
What are the indicators for GG as it keeps bumping up against resistance at 16? Is it bullish to keep bouncing around here or bearish? Is there a timeline where a decision has to be made for this to break hard one way or another or could it keep meandering here indefinitely? Thanks

We only know this after it happened, but GG was a bit overbought over the short term and needed a pullback to regain traction. The stock came down to support at $15.16 without breaking it on close and now is attacking the resistance zone again around $16.

This is bullish behavior. Gold is up today. This yuan revaluation is bearish for the US dollar and bullish for bullion. If gold reaches $450 in the short term (as I believe it will), GG will be trading at the technical target of the breakout, around $18.69, there's little doubt in my mind about this outcome.

Technicals (look at the long term relative strength of GG compared to other gold stocks) and fundamentals are in tandem pointing to higher prices on GG.

GG is the strongest and there isn't much more to it. I don't know if this advance phase is the real deal (doesn't look like because volume is a bit on the weak side) but more important than volume analysis is to respect your dear old friend trend. And the trend is bullish on GG.

A decisive breakout of the $16 level gives me $18.69 over the medium term.

Enough reasons to keep holding GG.

Profit taking on low volume day on GG.