Here are 2 Setups on Alamos Gold $AGI – January 30, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Alamos Gold ( NYSE: AGI ).
AGI ( NYSE: AGI ) is following some of the gold miners higher. If I look at GDX ( NYSEARCA: GDX ) here, we see GDX ( NYSEARCA: GDX ) gapping and going, and closing near the upper part of the range and doing it on heavier than average volume. This move in the miners is coming because we have gold hitting all-time highs.
I think it’s a great time to parse through and look for some relative strength in some of the gold miners. I did look at a handful, and one of the best that I found was Alamos Gold ( NYSE: AGI ). The reason for that is because it too is near its all-time highs. If I zoom out all the way back to 2012 we see AGI ( NYSE: AGI ) is above that level in 2012.
There’s not a lot of upward resistance, whereas if I look at something like Franco-Nevada ( NYSE: FNV ), we see FNV ( NYSE: FNV ) still in this wide choppy range, and well off its highs from even just 2022. So AGI ( NYSE: AGI ), I think, is going to be a nice winner here if the momentum in gold can continue. The best entry, I think, on AGI ( NYSE: AGI ) was actually a couple of days ago.
The reason for that is that we had AGI ( NYSE: AGI ) break out a pretty clear downward-sloping trendline of resistance, where we have resistance here, resistance here, and resistance here. What happened was, that we had AGI ( NYSE: AGI ) break out above that resistance, pull back, back-test that breakout level, and then continue higher.
AGI ( NYSE: AGI ), I think is extended here, but it doesn’t mean you can’t trade it if the momentum in gold continues. It is extended well above the 8-day, the 21-day, and the 50-day, you have to now look at this as a potential momentum trade. That means that you’re just literally riding the upward momentum as long as it lasts.
Then when it kicks you off you’re stepping aside and looking for some pullback bounces. I think AGI ( NYSE: AGI ) could be actionable here, with a break and a close above 21.45. If this can get above that clear level of resistance from back here in October, and back here in September, then I think that momentum has a possibility, at least a probability, to continue.
I’d look for a move above that level, and a close above, coming on volume for this momentum to continue. If it doesn’t, and it typically won’t, I’ll be honest, a lot of times the best time to buy gold is on a pullback, not on a breakout. Historically, when we do see gold breakout and get extended above the moving averages these moving averages can act as a magnet time and time again.
A lot of times you want to buy gold or gold miners near support, start small, and then as the trade works in your favor, you’re leaning into that trade a little bit. But at this point, it might keep going. So if it does, I think I’d look for a break above 21.45, coming on volume.
If it does pull back, then you will want to, in that case, look for a nice bounce off of either the 8-day EMA or the 21-day. It’s better if you get it by the 50-day, but if the momentum in gold continues it’s probably not going to come all the way back down there. I would look for a bounce off the 8-day and a bounce off the 21-day.
That is of course, in fact, if this momentum doesn’t continue and it consolidates or pulls back to the moving averages. Those are two setups that I’m looking to play out here on Alamos Gold ( NYSE: AGI ).
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