Double Bottom With Stronger RSI Is Time To Buy

Buying gold at 800$ is always a reasonable bet considering it should have been 1000 by now if not for all the manipulation that goes along in the financial markets. Gold has shred off a lot of points in last few weeks. I considered buying gold miner KGC when it dropped 35% last month.

Kinross Gold Corporation (KGC) is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of ore, and reclamation of mining properties. Kinross’ gold production and exploration activities are carried out in the United States, Brazil, Chile and the Russian Federation.

3-month KGC chart gives out some interesting pointers to trade on. When KGC hit 14.59$, RSI was way below 30 indicating oversold levels. A week later KGC bottomed at $14.65 but RSI was touching the 30 level. This meant the relative strength was improving. Double bottom and improving RSI meant it was time to make a buy. However not convinced of the double bottom I waited a few more days to see the upward movement before buying in. I picked up 1000@ of KGC at 15.65$ hoping to sell off for 500-600$ gain in a week time-frame. Turns out I was on the right side of the trade. 3 days later, KGC opened at $17+ level making it a good exit point for me bagging $1500 in profit. RSI and Stochastics are still on a rise and could possibly see $18+

  • Anonymous

    Now it is back at your 14.xx$ So if you had not sold your position, you just made a good 500-1000$ loss. Whats your next move?

  • sJ

    You bet. That is why you need to control your greed and keep entering and exiting the trade.

    I am waiting for gold to drop around 770 levels before i will get KGC again