Pattern play: Vista Gold
Jason Lubin December 17, 2020 11:15 AM
Upside breakout from a bearish channel.
Vista Gold (VGZ), a gold mining company, gapped up and broke out to the upside of a bearish channel that has been in place since early-August. The RSI is over 60 and has also crossed above a trendline. The simple moving averages (SMAs) are arranged in a mixed to bullish manner, as the 50-day SMA is above the 20-day SMA and the 20-day SMA is above the 200-day SMA. If the 20-day SMA can manage to cross above the 50-day SMA, it would be a bullish signal. It would seem that the catalyst is the price of Gold rising, which appears to be the result of the US Dollar making new 52-week lows. If price can manage to close above the upper trendline of the channel, it would be a bullish signal. If that occurs price could rise towards 1.34 and possibly 1.45. If price slips, traders should look to the 50-day SMA for support, considering that price was previously using it as resistance. If price fails to be supported at the 50-day SMA, then the last line of defense is 0.93. If price gets below 0.93, it could be a signal for a new down trend.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.