Bargain Stock #3
Gold producer Allied Nevada Gold Corp. (ANV) has swung from a 52-week low of $3.01 to a 52-week high of $14.38. After closing April 9 at $4.14, the stock’s technical picture suggest it could make a near-term run.
ANW’s chart shows a bullish Continuation Wedge pattern, which has the potential to send the stock up to $6.60 to $7.10 in approximately 17 trading days.
It was announced the company will be investigated on claims that it “violated federal securities laws by misrepresenting the state of its operations and improperly concealing that certain equipment crucial to the its mining efforts suffered from serious, ongoing defects and deficiencies,” but the stock didn’t seem fazed by the news.
Speculative traders may wish to trade bullish call options on ANV, as there is significant volume in the near-the-money May and June strikes.