Wednesday, April 20, 2011

Goldcorp: Cup and Handle Base Pattern

19 & 25 April 2011

I'm not an expert in technical analysis, but I know from experience that the "cup and handle" is about the nicest chart pattern you will ever see.

Wanta see one?

Then look at the current chart of Goldcorp.

It's a beauty.

And this one is somewhat aggressive. Notice how it is already angled upwards....

What do cup and handle formations do?

They go up (other things being equal, such as the stock market not crashing this week, etc.).

Oh yeah, here are a couple of examples (from the textbook).

McDonalds 1998-99:

And the Euro in Australian dollars (2008):


(UPDATE: McDonalds is still looking great in 2011. The Euro - not so hot, for now, especially in Australian dollars. My call for Goldcorp? Looking very good for a very long time to come - about as far as the eye can see!)


25 April 2011:

Oh yeah, some other gold miners and royalty companies are showing similar cup and handle patterns. Here are some.

Franco Nevada (one of my favourites:

Royal Gold (this one's a little skewed, but it's aggressive):

Yamana Gold (getting ready to move, a bit of a slow starter....):

Alexco Resources (creeping steadily upwards to double digits):

New Gold (give it time, it just swallowed a big bite of Richfield Ventures....):

And Minefinders is just an old-fashioned bottle rocket, with its "cup" having formed back in 2010 (the formation still works, obviously!):

Look like a pattern?

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