Low Priced Gold Stock May Be First To Breakout

This gold stock has something unusually bullish going on.

The Gold ETF (GLD) and the Gold Miners ETF (GDX) are both in big consolidation patterns.

However, this gold stock looks like it is ready to take off.

Whether you’re looking at the whole market or an industry group, the first movers are usually great trades.

Goldcorp (GG) is set up to breakout like a leader in Gold’s attempt to continue it’s turn around.

The ETFs that represent its industry, GLD and GDX, are in the bottom and middle areas of their respective consolidation patterns.

GG, on the other hand, tried to breakout last week.

Now that it has pulled back for a few days, it has set up a low point that can be used for a good stop if it breaks out in the next week or two.

The trade sets up like this.

Buy a breakout over 11.85 with a stop under 11.30.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily