|The stock market is not offering good growth at the moment. Shares like Google, Amazon, and Apple and others have been a disappointment to investors. Is this because of the indecision before the US elections or is this a sign that the economy is not recovering as quickly as the market would like it to? So, when we receive a buy signal for gold shares, we sit up and take notice.|
|FIGURE 1: CGX, WEEKLY|
|Graphic provided by: AdvancedGET.|
|Figure 1 is a weekly chart of Centerra Gold (CGX). The Elliott wave count is suggesting that the share price is in a wave 2 of a new bull trend. This is confirmed by the relative strength index (RSI) 14-period indicator, which is showing strength. How high can the share price go? Well, we do know that there is a triple-top formation resistance level at $23.59 for starters, a comfortable 100%-plus return.|
|FIGURE 2: CGX, DAILY|
|Graphic provided by: OmniTrader.|
|Figure 2 is a daily chart of Centerra Gold. The chart came to my attention when the vote line gave a buy signal with an advisor rating of 59. The buy signal on the vote line was triggered by the RSI 12-period strategy at the price $10.68. Do note that the RSI four-period indicator is also giving a buy signal.|
The pattern on the chart is a classic cup & handle formation, suggesting a move above $13.23 as a buy signal.
With a 59 advisor rating, I would be a buyer of the share at present prices. Cautious investors could wait until the price breaks above the handle at $13.23.
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|Phone # for sales:||6042634214|
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