Recent trading is showing strong signs of a turnaround in the gold universe. Gold broke up to an 11-week high, above its April downtrend and its 15-week moving average at the $1217 level. It looks good above this level, suggests Omar Ayales, metals sector specialist and editor of Gold Charts R Us.
Also, our in-house short-term gold momentum indicator shot upward confirming strength behind the metal's recent up-move. We already have a full position with an average buy-in near gold's current price. But depending on your overall exposure, if you're open or looking to increase your gold position, now would be a good time to pick up some.
We've been looking at other gold shares that represent great opportunities. B2Gold (BTG) is one of my favorites at current prices. It's a company growing by leaps and bounds with its major mine operations is safe jurisdictions. It does have a mining operation in Nicaragua but it has not been affected by local turmoil.
We recommend buying some BTG at market. Keep in mind, the stock rose with strength after breaking above its 15-week moving average at $2.40 and could be short-term overbought. Buy more on a pull back, ideally below $2.50. Our first profit target is at $3.20. Place stops at 2-day close below $2.40.
Compañía Mina Buenaventura, S.A. (BVN) is a large Peruvian miner with over 65 years of experience in exploration, development, construction and operation of mines in Peru.
It has solid assets and management in safe jurisdictions. BVN is also breaking from a H&S bottom with upside target near $16. I recommend buying some at market and more below $13.50. Our initial profit targets are set at $16 & $20. Place stops at a 2-day close below $13.