GC .TO is moving higher again after a flag pattern . That pattern also occurred near a prior swing high creating a small cup-and-handle-like pattern.
Looking for a move back toward the 2018 high. Around $56 I will start watching it very closely. Any weakness and I will get out.
While the reward:risk is about 2:1, the downside is that target is only about 6% away. That means it won't be a huge gain if it hits, but risk is also only about 3% on invested capital. There is the possibility that this turn into a bigger trade, with bigger profit potential if it rolls right through the $56 area.
This stock has already moved out of the breakout area near between $52.8 and $53. On Jan 18 it is moving higher on very strong volume in early trading.
Disclosure: long
Looking for a move back toward the 2018 high. Around $56 I will start watching it very closely. Any weakness and I will get out.
While the reward:risk is about 2:1, the downside is that target is only about 6% away. That means it won't be a huge gain if it hits, but risk is also only about 3% on invested capital. There is the possibility that this turn into a bigger trade, with bigger profit potential if it rolls right through the $56 area.
This stock has already moved out of the breakout area near between $52.8 and $53. On Jan 18 it is moving higher on very strong volume in early trading.
Disclosure: long
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/
