From the Desk of Ian Culley @IanCulley
I’ve had the pleasure of driving cross country multiple times, covering every inch of I-10.
I made so many memorable moments on those drives …
I pushed through white-out conditions in Kansas. (My brother had an appointment with the State Department in Washington D.C., and we couldn’t stop.)
I “accidentally” crossed into Juarez, Mexico, which turned into one helluva time!
And I picked up more than one speeding ticket on the reservation (highway patrol doesn’t play in Navajo country).
I somehow made it coast to coast every time.
While many details of those treks slip away with the years, I’ll always remember the Alamo.
I know, it’s funny. I didn’t even go inside.
To be clear, my memory of the Alamo has nothing to do with the historic battle or the revisionist histories that have been written and rewritten since.
Instead, I picture a meager fort in the twilight – nothing more. A truly humble beacon of strength.
The understated image resurfaces in my mind’s eye this week as I plan and plot the best way to trade gold.
As gold meets increased selling pressure, Alamos Gold $AGI might be a gold bug’s best bet.
Check out the chart of Alamos Gold:
AGI never registered oversold conditions on the 14-day RSI. It continues outperforming the Gold Miners ETF $GDX (see the Chartbook below). And it’s reclaiming a critical shelf of former highs at approximately 11.50.
If there was ever a place to stand with the gold bugs, AGI is it!
But remember, precious metals remain under pressure. It’s still do-or-die for gold. Last week’s gains haven’t flipped the script.
Here are two ways to play AGI: Either buy weakness back toward 11.50 or strength above 13, targeting 20. Both work! It all comes down to preference and trading style.
Regardless of approach, we have no business owning AGI below 11.50.
Alamos Gold will fail to entice the average buyer. It’s not the best trade on the sheet, as energy names break to new highs.
The odds of success appear scant for AGI – not unlike an old fort in the moonlight.
But every hard-fought battle has to begin somewhere.
I can’t think of a more suitable place for gold bugs to get behind a rally than Alamos Gold, as it reclaims lost ground.
Stay tuned!
Click here to watch this week’s Gold Rush Video:
Let us know what you think. We love hearing from you.
Thanks for reading.
And be sure to download this week’s Precious Metals Report below!
Allstarcharts Team
