Gold Stocks Are Known For Safe Havens But What If We Don’t Get A China Trade Deal Soon?
As an investor or trader, we should always keep up with what’s going on with the news and have a game plan. It’s been a while since we have had a news headline like the China Trade Deal. Any time these words hit the news wires we’d get volatile moves in the market.
We see stocks fall and gold goes up. We also saw gold hit 5-year highs of $1,566.20 we are now sitting at $1,464.96. As of now, we have a phase 1 plan for the China trade deal on the table.
When doing some DD, all the phase 1 deal boils down to is a trade truce for now. The market is taking this as a win but it’s far from a deal. China and the US were supposed to have a phase one deal by Nov/Dec; now January. The trend is our friend as traders and investors say, so we don’t fight the trend; we look for opportunities.
Right now, the market is strong, but in case a trade deal doesn’t happen, it’s good to have a list of gold stocks to watch. When I’m looking at gold stocks one of the things I look at is the chart. I also look at how many of the shares are held by Institutions. Here are a few names that could be on a gold stocks watch list if we don’t get a trade deal.
Gold Stocks To Watch: Harmony Gold (HMY)
As the first gold stock to watch, Harmony (HMY Stock Report) has been trading better than most of the gold stocks on this sector pullback from $1,500. The stock has been able to hold its 50-day moving average at $3.17. Furthermore, HMY stock has a 432 million float with 81% being held by Insinuations.
Additional levels to note are support and resistance. At the moment the charts may show heavier resistance at $5.00 and $9.00. In Q1 HMY production was 361,085 ounces down 5% from last year. But since the increased price of gold, profit rose 36% to $162 million. The company still has some issues going on, however. This has mainly been at its Wafi-Golpu Joint Venture project.
Gold Stocks To Watch: Gold Fields Limited (GFI)
The next company on this list is Gold Fields Limited (GFI Stock Report). GFI stock is holding above its 200-day moving average at $4.83. It’s also right below its 50-day moving average at $5.40. As far as support and resistance, the chart for this gold-stock could have major resistance at $6.30 then again at its gap entry at $9.00. GFI has an 820 million float, 71 % of which is held by institutions.
In its 6k released on 11-11 for November 12th, the company showed its net debt balance decrease by 97 million. Its production decreased by 2%. Furthermore, the company’s main mine, Deep South returned to profit after 10 years of losses. The company kept its guidance the same and is looking to reduce costs for a solid 2020.
Gold Stocks To Watch: Eldorado Gold Corp (EGO)
Eldorado Gold Corp. (EGO Stock Report) had a hard time moving until it completed a reverse split on 12-31-18 right in time for the gold stock move. EGO stock is trading above its 200-day moving average at $6.22 and right below its 50-day moving average at $7.98. The stock has major resistance at $10.00 then $14.00 area.
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Eldorado has a 158 million float with 61% held by Institutions. The company released its 6k for Nov 15th. Its gold Reserves totaled 16.4 million ounces as of September 30th. They showed an increase in the Perama Hill and Perama South projects.
With the Markets being near all-time highs and it seems to be based on a trade deal with China, it’s always good to have a game plan if the trade deal does not happen. These are a few gold stocks with large floats being held by institutions to keep on watch. Remember to watch the news closely and always have a strategy.
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