ASA Limited (ASA) — This ETF provides investors with an opportunity to invest in companies engaged in the mining or processing of gold, silver, platinum, diamonds, and other precious minerals.
The stock broke from an ascending triangle on a bullish formation called a Golden Cross and on May 8 at $47.50 the DMO said, “The target for this breakout is initially $65 but longer-term investors could see ASA back to its old high of over $90 made in early 2008.”
The target at $65 was easily made when ASA ran to over $72. The recent pullback on profit taking may be a good opportunity to buy ASA for its longer-term target of over $90. Note the buy signal yesterday from our internal indicator, the CBR.
For traders: A break through the double top at $65 should result in a quick trade to the last peak at $72.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
