The recent pullback in gold held at the September low and is reversing higher. Precious metals investors hope this is a sign that Gold is ready to move higher.
Support for Gold futures prices also gives rise to several long trading ideas in the precious metals space, particularly gold mining stocks.
Today we share two stocks that we like and are adding to long positions: Newmont Mining (NEM) and Barrick Gold (GOLD).
Both companies are well known and have been around a long time. These players should attract money on a rally in gold prices. Newmont Mining looks to retest its highs with an initial stock price target of $71 (and potentially as high as $80). Barrick Gold’s stock price is reversing higher and needs to hold its lows (and 200 day moving average). A move higher may target $32.
The gold mining stock charts below are annotated from an “active” investor standpoint and require stops and discipline.
The author has a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.