From the Desk of Ian Culley @IanCulley
Mining stocks are breaking out.
All four names we outlined in last week’s Gold Rush Video have triggered buy signals.
The tide appears to swing in favor of the gold bugs.
And, based on Monday’s bullish price action, perhaps it’s just the beginning.
Check out the next gold miner most likely to break loose…
Eldorado Gold $EGO is carving out a classic inverted head-and-shoulders pattern:
Risk is well-defined at the neckline, highlighted by a series of former highs.
This former resistance level reveals a significant supply zone that’s capped higher prices and subdued overzealous gold bugs since early 2021.
But that all changes on a break to new multi-year highs.
I’m long EGO on a daily close above 12.25, with an initial target of 16.50 and a secondary objective just beyond the next extension level at approximately 25.
I adjusted my longer-term aim based on the critical polarity zone coinciding with the 2016 peak:
The difference between the two levels is negligible. And I want to give precious metal mining stocks plenty of room to run.
Gold futures are challenging overhead supply. Silver is ripping higher. And the US Dollar Index $DXY is printing fresh lows.
It sounds like a good time to buy gold mining stocks to me.
Stay tuned.
Click here to watch this week’s Gold Rush Video:
Thanks for reading.
Let us know what you think. We love hearing from you.
And be sure to download this week’s Precious Metals Report below!
Allstarcharts Team
