Morning Report Monday 17 March 2014
Gold is approaching my target of $1,400 US/oz, as conveyed over the past three months.
When I look at both Newcrest Mining (NCM) and Barrick Gold (ABX.US) (the largest gold company in the world), I believe a significant downturn is looming.
NCM may bounce as high as $16, perhaps a spike on Ukraine/Russia concerns, but I believe that a move back under $6.96 will follow. As such, my recommendation is to sell now and wait.
ABX.US may bounce a little higher towards $25, but I am targeting another downturn to fresh 10 year lows under $13. Again, sell now and wait.
In conclusion: I am a seller of gold stocks now, not a buyer. The next major move is likely to be down. I could hold longs with a close stop, but I would simply sell and walk away and ideally await a better opportunity in months to come.
Show more...
