I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Friday, April 30, 2010

A look at a miner that I continue to remain very bullish on - AEM

No need to lay out the fundamentals for Agnico-Eagle Mines (AEM). They were intact years ago when I first valued them and the case for their continued favorable valuation still remains high. Instead, let me point you to a few articles from the man who really knows his Gold and GSMs, Christopher Barker (TMFSinchiruna)

-- Enjoy the View From Gold Mountain
-- Agnico Braves the Cold for Gold
-- Our Little Eaglet Is All Grown Up
-- Agnico-Eagle Will Shine in '09

But what I am more interested in focusing on here are the technicals. And I think they are still *very* favorable for AEM. Of course, this presupposes you are bullish on gold as well (and I obviously am).

I think we have a large bullish ascending triangle in the making and getting close to completion (both a sym-tri and an ascending-tri are continuation patterns, but the ascending tri is marked by a top line that is down-sloping/nearly horizontal with a bottom support line that is clearly uptrending). And as the notes on the charts suggest, there is still a lot of upside potential.

(Disclosure: I am long AEM)
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