3SOF

Nothing yet on GG, big fight with the $16 resistance level. I hope it breaks higher. I've read somewhere these guys are sitting in $1B in cash to fund acquisitions, so expect some news on that arena in the future.

Technically the stock has been a bit hard to understand, but I have a simple trading plan so I might as well just follow it and don't think too much on the fundamental side.

The plan is:

1) Sell with a small loss if GG is set to close below the $15.16 support level
2) Sell with a big profit at the technical target of a potential breakout of the $16 area, which is $18.69.

GG is still trading on a tight range, I'll keep respecting the plan designed on yesterday's analysis.

I've added the possibility of an ascending trendline, we need a third touch to validate it. Today that line will be at $15.51.

Hello Mr. Randolph
How long can this action go on before we get a hard break one way or another? Is the extremely low volume bearish or bullish? Earnings are released on 8/15 and that will also have a huge effect on the final direction

I don't know how long it will take for GG to decide itself, I'm pleased with the fact of having a good probability, on technicals and fundamentals, that the breakout will be higher.

But of course, GG isn't a fast moving stock ...

Volume is on the low side on this consolidation phase, but this doesn't mean much, anytime we may get a white marubozu with volume above average definitely crossing the $16 resistance level.

Looks like today is the breakout we have been waiting for? 16.26(new %2 wk high) on decent volume 

Quote from: armoredsaint on July 29, 2005, 04:37:54 PM
Looks like today is the breakout we have been waiting for? 16.26(new %2 wk high) on decent volume

I believe so armoredsaint !

The close on Friday was a new 52 week high and a confirmation (considering volume) that GG is breaking out of the $16 level and the target of that breakout comes only at $18.69, a new all time high for GG.

Not terribly exciting but a safe play.

Thanks again Mr. Randolph

What are the ramifications of a hard break above 18.69 with volume? Would that be blue sky potential and maybe 30 or more in a few months as a possibility

Quote from: armoredsaint on August 01, 2005, 12:38:44 PM
Thanks again Mr. Randolph

What are the ramifications of a hard break above 18.69 with volume? Would that be blue sky potential and maybe 30 or more in a few months as a possibility

Yes, that's a possibility. Gold is in a long term bull market and GG is one of the best positioned companies to benefit from the bullion rise.

Yesterday we've had somekind of a doji candlestick which shows indecision by traders. Indecision with low volume. But price closed at another 52 week high, and probably that's the most important development.

I'm holding GG for the medium term, it's not a fast moving stock, but that's ok for the objectives set for the 3 Stocks on Fire Portfolio (50% average return per year - of course, the more, the better).

We've had these news on Goldcorp: Goldcorp Enters into US$500 Million Credit Facility to Finance Acquisitions

The company really believes the gold long term bull market is here to stay. I guess they're right. My eyes shine everytime I read this:

«Goldcorp is the world's lowest cost and fastest growing million ounce gold producer. Gold production in 2005 is expected to exceed 1.1 million ounces at a cash cost of less than US$60 per ounce. By 2007, gold production is projected to increase by 40% to over 1.6 million ounces. Goldcorp has a strong balance sheet and no hedging.»

Fundamentals and technicals are working in tandem on GG. Another new 52 week high yesterday.

Yeah, great shot from GG as the gold price rose, as expected. I'm looking to take profits at the technical target of the breakout, at $18.69. Well, it is still a bit far away from this, but GG will get there, almost for sure don't you think?

Plan the trade, trade the plan.

No reason to sell GG here, though the candlestick is somewhat bearish. I will sell only at the technical target of the breakout, around $18.69.

Will take profits only at the technical target of the breakout, $18.69. I believe it's just a matter of time.

GG is coming down because of weakness in the dollar, but the gold price, as of now, hasn't been affected.

GG has a lot of support underneath current prices and the uptrend will probably continue. I'll continue holding the stock.

I know the market isn't made with a ruler and a square, but sometimes it sure looks like it. Just look at the kiss on support GG did, and the subsequent recovery rally.

Off course I'll continue to hold GG, selling just at the $18.69 technical target.

Nice rally on GG, it's a shame I'll sell with just 16.8% profit (that is, if the target at $18.69 is reached), but that was my initial plan and I'll follow it.

GG is a big company, the best in its sector and maybe later I'll come back to it.