The stock market finally seems to be hitting some rough waters after months of smooth sailing. It would be prudent for investors to be playing some defense now and looking for charts that are in clear bullish territory. I came across this chart and immediately noticed its awesome breakout and the sector it was in. I don’t think it’s a coincidence given the broader geopolitical situation. Say hello to Coeur d’Alene Mines (CDE).
According to Yahoo! Finance, the company engages in the operation, ownership, exploration, development, and mining of silver and gold properties in South America, Mexico, the United States, and Australia. It also explores for lead and zinc ores, so it is quite simply a mining company.
Stars Aligning
The company just reported an outstanding fourth quarter in which earnings almost doubled the consensus estimate, coming at 56 cents versus an expected 30 cents. I think investors are less concerned with earnings for mining companies than its production plans, and the company didn’t disappoint. CEO Dennis Wheeler expects the company to have record gold and silver production along with excellent cash flows. The stock zoomed on the news and investors ate it all up.
“Coeur’s very strong fourth quarter performance demonstrates the powerful combination of our three new long-life silver and gold operations with exceptionally strong precious metals prices. The Company materially outperformed the prior quarter and year during the fourth quarter and 2010,” according to the CEO.
Picture Perfect
If a picture is worth 1000 words, this chart should be worth much more. Take a look at that breakout on enormous volume at the end and that’s all you need to know. There was strong resistance at $28, which was the ceiling at five different times, but that is now in the past as it has become strong support. I expect to see some consolidation, mostly by some more sideways action, but the advantage clearly lies with the bulls now. Not only are the fundamentals great, but investors will park their cash in gold related stocks as long as turmoil in the Middle East continues. It’s a safe bet that this one has more room on the upside.
Getting Technical: Golden Chart For This Gold Stock is an article from: 
