Agnico Eagle looks ready to soar! $AEM – January 21, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to look at a gold miner, Agnico Eagle Mines ( NYSE: AEM ).
Firstly, I want to tell the story of what I’m seeing happening in the market right now. We’ll start things off with the Dollar Index ( DXY ). On the DXY ( DXY ) we have seen a potential breakdown here on the dollar, with a move quite low under the 8-day and the 21-day EMA.
With the incoming administration, we know Donald Trump wants a weaker dollar. That’s going to be good for a couple of things, it’s going to be good for Bitcoin, but it’s also going to be good for things like gold and the gold miners ( NYSEARCA: GLD ).
One of the better-looking gold miners is Agnico Eagle Mines ( NYSE: AEM ). What we have from Agnico ( NYSE: AEM ) is a pretty clear break of resistance here. I have a downward-sloping trendline laid out with resistance right here, right here, and right here.
And we have a move above that level coming on volume at the same time that we’re seeing the dollar break down. We’re seeing a rotation out of dollars and potentially into harder assets like gold and some of the gold miners.
I definitely think this looks like an actionable trade here. If you missed this move, you may want to look for a potential pullback to either the 8-day or the 21-day. But I think if we continue to see that drop in the dollar. Then that’s going to be good for gold, you are going to want to watch gold mining stocks and the Gold SPDR like GLD ( NYSEARCA: GLD ).
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