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6 Volatile Gold Mining Stocks and How to Trade Them on Technicals

NEW YORK (TheStreet) -- The bubble in Comex gold began from its 200-week simple moving average at $651.3 in October 2008. The bubble inflated to as high as $1923.7 the Troy ounce in September 2011. Breaking below the 200-week SMA at $1435.3 between mid-April 2013 and mid-May 2013 was the final signal that the gold bubble had popped.

Here's the weekly chart for Comex gold futures.

Courtesy of MetaStock Xenith

The weekly chart for gold is negative, with its five-week modified moving average at $1300.9 and its 200-week SMA peaking at $1498.9.

Courtesy of MetaStock Xenith

The post-bubble low for gold has been $1179.4, set in June 2013. The low on the daily graph above is $1181.4, set on December 31, 2013. Gold moved above its 200-day SMA at $1309.5 on Feb. 14, and the 2014 high so far is $1392.6 on March 17.

Gold has been trading back and forth around its 200-day SMA now at $1285.4 since Feb. 14. A quarterly value level is $1234.6, with a monthly pivot at $1304.3 and semiannual risky level at $1613.0.

Let's measure the performance of six gold mining stocks vs. the performance of gold. Two "crunching the numbers" tables follow.

Barrick Gold (ABX - Get Report) ($18.45) is up 4.7% year to date and led the early-2014 gold rally. The stock traded as low as $15.26 on Dec. 4, crossed above its 200-day SMA at $18.30 on Jan. 17 and traded as high as $21.45 on Feb. 25 before the 2014 peak in gold. Barrick traded as low as $15.47 on May 28 before the low in gold. The stock is above its 200-day at $18.12 with gold below.

The weekly chart is neutral, with Barrick just below its five-week MMA at $18.46. In common with gold, the stock is well below its 200-week SMA at $34.38. A semiannual value level is $17.82 with a monthly risky level at $19.32.

Up next: Anglogold and Yamana Gold.

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