To receive further information on this Noble Corporation Ordinary Shares New Gold Inc. (USA) (NYSEMKT:NGD) trade or any of Profit Scanner’s trading opportunities, sign up for a risk-free trial of Profit Scanner today.
No doubt about it: Gold mining stocks have broken out.
InvestorPlace advisor, Ken Trester, tells us that, “The nature of the breakout suggests this momentum will last for a little while, so it may be a trend traders can continue to exploit. With a lot of global currencies going into negative rates, gold becomes more valuable. It’s another currency, but it’s one that has a substance to it and thus becomes appealing to worried investors looking for a hedge.”
Profit Scanner powered by Recognia scans the entire universe of equities every day to uncover powerful technical patterns signaling big moves, and it has uncovered several gold mining opportunities, including a potential trade in New Gold Inc. (NGD).
On April 19, Profit Scanner identified a bullish Bottom Triangle pattern in New Gold that could take the gold mining stock some 65% higher before the summer is out.
A Bottom Triangle tells traders that New Gold’s price appears to have bottomed, showing signs of reversal as it has now broken upward after a time period of uncertainty or consolidation. A Bottom Triangle pattern shows two converging trendlines as the stock’s prices reach lower highs and higher lows. Volume will diminish as the price swings back and forth between an increasingly narrow trading range. This reflects uncertainty in the market direction.
Then well before the Bottom Triangle reaches its apex, the stock’s price will break above the upper trendline with a significant increase in volume. This confirms the bullish Bottom Triangle pattern as a reversal of the prior downtrend.
The Bottom Triangle pattern in New Gold carries an upward price target of $6.90 to $7.50, about a 65% jump on the high end from where New Gold closed on Monday. The pattern is expected to play out within 64 trading days, or less than three months.
Support for New Gold shares resides at $2.28 while there is no significant resistance on the stock’s chart, clearing the runway for the gold miner. However, Profit Scanner suggests a “medium” stop loss of $3.46 for those traders who aim to limit losses.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.
