Looking for a golden trade? Try this one on Agnico Eagle Mining ($AEM) (December 18, 2019)
AEM FNV AEM
I want to look at gold today, in particular, Agnico Eagle Mines ( NYSE: AEM ) and this is why: Some of the other stocks are doing pretty well right now. I’ve got one of them in my account, Franco-Nevada ( NYSE: FNV ). This has been squeezing for a while; I kind of thought by now it would pop out above $100.00 but it hasn’t yet. This, by the way, is a low-risk entry right here. You are buying the stock, you can keep a real tight stop on this and be just fine because if the stock starts falling below the 50 then the reason for getting in is negated and you want to get out. So Franco-Nevada ( NYSE: FNV ) is one you can look at.
But I really like Agnico Eagle ( NYSE: AEM ) because, frankly, it gives you a little bit more upside here without the downside risk, anymore downside risk than FNV ( NYSE: FNV ). You are buying the stock here at about $59.00 and you can keep a stop right around here, around 57.80 or so. You are risking a couple percent; you are getting an early start on this. This is kind of a cup with a long handle. You can see the cup here and then the stock has been drifting up and down in this series of rallies and natural reactions. All the while though, forming this resistance area here at 62.00 and a support level here, so the stock is right here now. So you are buying a little bit of stock here and then if the stock breaks out you buy some more right there and that is how you are getting into this stock.
Just remember, if you can buy a little bit of a pullback close to support, that’s a good time to actually start a position. And then when you might normally be buying the position on a breakout, instead, you’ve got kind of a head start on it and then you are just adding to your position safely and you have got a lower cost basis.
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