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timwest
Oct 21, 2011 9:15 AM

GG - Goldcorp oversold in downtrend 

GIGLIO GROUPMIL

Description

Note the distribution zone graphed on the chart from 47 to 56. This is where long term holders liquidated their shares. It may be tempting to buy shares here for a retest of the GAP around 49-51, representing a 10%-15% gain from current prices, with risk at the $43 level or 3%. I have made some cautionary comments about the company's unimpressive financial results from 2008-2009-2010 years ending in December. The amount of profit the company earns isn't impressive to me, so longer term I view this as a great shorting opportunity once this rally finishes.
Comments
timwest
GG buy idea from $44.37 three days ago is getting close to the target, reaching over $48 today. Gold surged 50/OZ to get back over 1700/OZ after the European's cancelled an important bank meeting, but I would still stick with the exit strategy at $49-$51 area. Raise your stop to $47 to lock in fast profits.
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