Despite giving us a few SELL SIGNALS a few sessions ago, ABX won't go down, and is continuing to move strongly higher. With GOLD moving higher all Gold stocks have rallied, but ABX is outperforming the rest. ABX is in a very strong up trending channel and despite being in overbought territory in terms of the Stochastic it has give us another BUY SIGNAL. ABX is consistently hitting new 52 week highs, and according to the 3 year chart ABX has the potential to go as high as $49 and $53 before seeing any strong resistance (levels not seen since 2007-2008). Taking a position around $45.00 should be relatively safe as it appears to have relatively good support now at $44.00, $43.00 and $42.00. This means that taking a position at $45.00 while being willing to take on a risk as high as -7% or -8% has little chance of being triggered and perhaps don't need to go as low to give us a clear SELL SIGNAL. If ABX were to break its up trending channel line, it would only need to go and close towards $43.00 tomorrow for a clear SELL SIGNAL. With all that being said ABX can be considered to be in a SAFE BUY ZONE. Despite selling my ABX position around $42.00-$43.00 just last week, I have now taken on a new position seeing now the potential for ABX to continue higher. I had sold ABX last week because I did not want to risk more gains that I wanted to, and the up trending channel line was narrower then. This is the whole purpose of my Y-Swing 3.0 strategy; locking in gains when you have them and getting back in when it's safe and that trend is more clear. Again, don't forget to set a stop loss order, and with ABX it should be relatively tight, as you don't need to risk as much as -7% or -8%, around -5% from current levels should be enough.
ABX - LONG
Hi Yoel,
ReplyDeleteWhat is current update on ABX since it went down $1.36, is it still a safe buy and any uptrend remaining?
Thanks, DG
Despite GOLD continuing to move higher, ABX and most Gold stocks were down today. ABX gave us a SELL SIGNAL with a Dark Cloud formation today. However, ABX is still trading within its up trending channel. This means that tomorrow is a critical day for ABX. A move down below $43.00 would break the channel trend and give us another SELL SIGNAL. I did consider selling my position pre-maturely today at a loss, however the fact that ABX also has support at $43.00 made me hold on for now. If ABX does fall below $43.00 tomorrow my stop loss order will get triggered. If you are looking to take a long position in ABX, you should wait and see tomorrow if the price bounces back up and continues to trade within this channel. The SAFE BUY ZONE simply means that ABX does not need to fall off the average -7% stop loss order that you should set to get a SELL ORDER, meaning that you would take on a smaller loss than for other stocks in average. ABX would need to trade around $44.50 and above tomorrow for it to stay up within its up trending channel. So, if the price does bounce back up to this level or higher, it would then be safe again to enter into a position. If you do, make sure to set a Stop Loss order below the lower channel line, which would then be around $44.50. ABX is a WAIT with an imminent SELL SIGNAL.
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