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Where I See Opportunity in Gold

The weakening U.S. dollar benefits gold stocks like NEM and AEM

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AngloGold Ashanti Limited (ADR) (NYSE:AU) has a very wide range between the two moving averages. The stock is currently trading in the middle of the two indictors, giving it roughly 7%-11% of wiggle room in either direction.

While there is the chance for upside, notice that the relative strength index (RSI, at the bottom of the chart) has recently crossed into overbought territory. A stock can trade at these levels for some time before changing direction, but odds are that AU will have trouble breaking out in the near term.

The chart for Gold Fields Limited (ADR) (NYSE:GFI) is very similar to that of AU, with a range of more than 20% between the 50- and 200-day moving averages. GFI stock is trading near the upper end of the range following Thursday’s strong momentum, but considering it is closing in on overbought territory, I expect it to continue trading between support and resistance for the time being.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt is currently in the midst of an exciting launch centered around his trademark three-prong investing approach that targets the mega-trends old Wall Street is missing out on. His next-gen investing strategy is delivering enormous profits in stocks and ETFs. Click here for more information on his latest venture.

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