Gold and silver are pushing higher after posting potential failed breakdowns earlier this month.
If the October lows mark a critical inflection point – and it’s still a big “if” – the following three names will be ripping above our risk levels…
First up is a $5B gold mining company headquartered in Toronto, Canada.
This is Alamos Gold $AGI:
AGI provided profits in the spring, launching it to “fan-favorite” status.
I like betting on past winners, bullish momentum, and strength. Alamos Gold checks all those boxes.
I’m buying a break above 13, targeting 20 in the coming 3-6 months.
I also like buying strength in Kinross Gold $KGC, a $6.5B gold mining company also operating out of Toronto:
KGC recently posted a new 52-week high. Few gold mining stocks can tout comparable strength as many names sunk to fresh multi-year lows during the first week of October.
The absolute and relative strength has my full attention.
I’m long KGC above 5.75, targeting 11.50 in the coming 4-6 months.
The third name isn’t as strong as the first two. But momentum is improving, and our risk is well-defined. If we’re wrong, we’ll know quickly.
Here’s Sandstorm Gold $SAND, a $1.5B gold mining stock based in Vancouver, British Columbia:
SAND belongs to the long list of stocks hitting multi-year lows a couple weeks ago.
Like gold and silver futures, buyers promptly repaired the damage by driving prices above a critical shelf of former lows.
As long as price holds above those former lows at approximately 4.50, I like owning SAND with an upside objective of 10.25 over longer time frames.
That’s it for today.
Gold and silver futures are bouncing higher. If the near-term rally for the shiny rocks gains traction, these three names will pack plenty of profits.
