NEW BULLISH Plays
Goldcorp - GG - close: 40.06 change: +0.97 stop: 38.49
Goldcorp is the lowest-cost and fastest growing senior gold producer with operations and development projects situated in low political risk countries throughout the Americas.
A Canadian company headquartered in Vancouver, Canada, Goldcorp employs more than 10,000 people worldwide.
(source: company press release or website)
Why We Like It:
Gold and mining stocks are starting to look bullish again as the U.S. dollar starts to roll over. Most commodities are traded in dollars and if the dollar declines in value it takes dollars to buy the commodity. A falling dollar is bullish for gold prices. Looking at shares of GG the stock appears to be forming a bull-flag pattern and it's bouncing from the simple 200-dma. I am tempted to buy the stock now. However, there is some resistance at $41.00. Therefore I am suggesting a trigger to open bullish positions a $41.10. If triggered our target is $44.90.
Trigger to open positions @ 41.10
Suggested Position: GG stock @ 41.10(unopened)
Option traders may want to consider the following:
BUY CALL APRIL $42 (GG 10D42.00) current ask $0.85
Entry on March xx at $xx.xx
Earnings Date 05/06/10 (unconfirmed)
Average Daily Volume: 7.5 million
Listed on March 16th, 2010