This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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

Read More: 10 Stocks Carl Icahn Loves in 2014

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.

Read More: Tesla's Model X: Everything We Know

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ABX $11.48 4.70%
NEM $22.10 1.80%
AAPL $124.02 -0.33%
FB $81.36 -1.00%
GOOG $544.33 -0.67%


DOW 17,699.35 -76.77 -0.43%
S&P 500 2,056.41 -11.48 -0.56%
NASDAQ 4,863.1930 -37.6920 -0.77%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs