KGC generated the highest daily close in the last 5 weeks on Friday and in the process the bulls were able to negate the break of long-term support at 5.05/4.98 that occurred 3 weeks ago. If the bulls are able to generate another green weekly close next Friday, new buying is likely to be seen as this $5 support level has generated rallies up to at least $8 every single time (4 times) during the past 12 years. The stock closed near the highs of the week and further upside is expected to be seen this coming week. The stock still has an open gap between 5.34 and 5.50 that if closed would be a strong positive sign, especially since the 50-day MA is currently at 5.45. The stock now has a confirmed double bottom on the daily chart and 2 successful retests thereafter, suggesting that all the work to the downside has now been done and that the chart is fulfilled. Support is found at 4.87 and resistance at 5.34.
KGC had the most impressive day of all the held stocks. The stock gapped up and broke and closed above the 50-day MA, currently at 5.45. In addition, the stock closed on the highs of the day suggesting that further upside will be seen. The gap today could be extremely important because a very rare "island" gap formation may have been created today. Islands are extremely rare and usually are only indicative at major highs of major lows. Since this is an area that is considered a major low, if the island is confirmed it will likely generate upward movement of consequence. As mentioned in the newsletter, this level has been seen 4 times in the past 11 years and each time it held and the stock rallied at least to the $8 level. Today's action certainly made that a possibility now.
Hi Lucky, you're pretty much saying the same thing as I did in my post from Friday evening. An up close next week on the weekly chart will put us in a situation that has not occurred in over 10 months; however, we have to close next week up from this past Friday's close and hopefully up significantly. What puts us right on the cusp of something good or something disappointing is the gold chart. The gold chart shows the same setup but the president of the third straight up-week setup is from last March not last September. The gold setup resulted in the April carnage and that means we really need strong closes for the next 2 weeks for things to really start looking bullish in a more confirmed way. Remember, there is always the possibility of many weeks/months of sideways price action as well. We need a little more, but I agree, we are on the cusp of a nice move higher. The setup is definitely forming as long as gold doesn't have other diabolical plans. This is a great time to be selling puts with strikes near or slightly below current levels if looking to get long.