Agnico Eagle Mines Ltd (AEM) gold diggers running out of breath
Agnico Eagle Mines Limited is active as a mining company in gold production, operating gold mines in North and South America as well as in Europe. The company, with its headquarters in Toronto, is traded on the NYSE with the acronym AEM, and has recorded significant price declines in the last 6 months. In this analysis, we explore the possibility of further falling prices.
In the daily chart shown, we see a big downward trend. Since mid-December, the prices have recovered once again, and have pushed through the MA200 line in the last few days. It now remains to be seen whether the prices can remain above the MA or whether short signals will form in the subordinate hourly chart. As long as the high at 53 USD is not clearly broken, the stock is in a downward trend.
In any case, with this stock, one should take the gold market into account. Since AEM operates gold mines, before making an entry into the stock, it is essential to consider the gold price. The price development is very similar to the chart image of our stock. When we observe the gold price more closely, it is apparent that a small upward trend has formed in the last few days. Only when this turns around, do the probabilities for our short scenario in the AEM become even higher.
In the daily chart shown, we see a big downward trend. Since mid-December, the prices have recovered once again, and have pushed through the MA200 line in the last few days. It now remains to be seen whether the prices can remain above the MA or whether short signals will form in the subordinate hourly chart. As long as the high at 53 USD is not clearly broken, the stock is in a downward trend.
In any case, with this stock, one should take the gold market into account. Since AEM operates gold mines, before making an entry into the stock, it is essential to consider the gold price. The price development is very similar to the chart image of our stock. When we observe the gold price more closely, it is apparent that a small upward trend has formed in the last few days. Only when this turns around, do the probabilities for our short scenario in the AEM become even higher.