Agnico Eagle Mines (AEM) Showing Signs Of Being A Roof Leaker

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Trade-Ideas LLC identified Agnico Eagle Mines ( AEM) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Agnico Eagle Mines as such a stock due to the following factors:

  • AEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.8 million.
  • AEM has traded 2.5 million shares today.
  • AEM is trading at 1.62 times the normal volume for the stock at this time of day.
  • AEM crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on AEM:

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties. It primarily explores for gold, as well as for silver, copper, zinc, and lead. The stock currently has a dividend yield of 1%. Currently there are 10 analysts that rate Agnico Eagle Mines a buy, no analysts rate it a sell, and 2 rate it a hold.

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