Technical Analysis | Trading: 2015-10-23 | IFCM
IFC Markets Online CFD Broker

Technical Analysis - Trading: 2015-10-23

Gold mining stocks lagged behind gold

Gold price has fallen by 2% since the beginning of the year, while shares of Canadian gold mining company Goldcorp - by 17%. It is also much worse than the Canada Stock Market S&P/TSX 60, which from the beginning of the year fell by 5%. In recent months gold price rises. Will it contribute to the growth of Goldcorp quotes? The company's shares are traded on the New York Stock Exchange.

In 2014/13 the Company recorded net operating losses and its shares felt by 2.5 times from $30 to $12. This year the company plans to increase gold production to 3.3-3.6 million ounces from last year's level of 2.87 million and reduce the capital costs up to $1.2-1.4 billion from $2.2 billion. In the 2nd quarter of 2015 gold sales amounted to 903 thousand ounces (production - 908 thousand), compared with 827.5 thousand ounces in the 1st quarter and 639.5 thousand - in the 2nd quarter of 2014. This allowed Goldcorp to increase two-fold in net income from operations compared to the 2nd quarter of 2014. Publishing of third-quarter financial results will be held on October 29, 2015. During this period there was a gold prices decline in the world. However, in our opinion, it is already included in the current stock prices. We do not exclude that the planned increase in production and a reduction in capital costs can have a positive impact on financial performance.

GG

On the daily timeframe, GG:D1 shares switched from a downtrend to neutral. The MACD and Parabolic show buy signals. RSI formed upward divergence. He came out from the overbought zone. Bollinger Lines widened, which could mean an increase in volatility. They have an upward slope. We do not exclude the development of a bullish trend, if Goldcorp shares overcome the upper border (16) of the neutral trend. This level can be used as an entry point. The initial stop loss is possible below the approximate middle of the neutral range - the level 14. After opening of a pending order, move stop loss after Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the ratio of potential profit/loss in our favor. The most cautious traders after making the deal can switch to a four-hour timeframe and set the stop-loss, moving it in the direction of price movement. If the price overcomes the stop level (14) without activating the order (16), we recommend that you close the position: the market has the internal changes that have not been taken into account.

PositionBuy
Buy stopabove 16
Stop lossbelow 14
IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger