Goldcorp is a mining company from Canada with headquarters in Vancouver that is active throughout the whole of America. The company is listed in the S&P/TSX composite index and in the year 2006, it was the third-largest gold producer in North America. The following analysis will go into more detail on the company’s stock from a chart-oriented point of view.
Review (daily chart)
Since the high in mid-February of this year at 17.87 USD, the stock has formed a clear downward trend in the daily chart, which is currently in the correction phase and has already corrected almost 50% of the previous downward movement. The SMA 200, which is watched by the large market participants, serves as additional support for the short direction.
Short- to mid-term outlook (daily chart)
In accordance with the analysis of the daily chart, two scenarios are possible:
Scenario 1 (depicted in red) is a continued correction that runs up to the supporting SMA 200 and turns back in the trend direction, which would be preferable.
Scenario 2 (shown in blue) would be the ending of the currently running correction and the continuation of the downward trend.
Outlook (hourly chart)
In the hourly chart, the correction is to be viewed as the current upward trend, which is representing our signal trend and first has to develop in our preferred trading direction.
For a short entry, we should wait for the formation of a signal, e.g. in the form of a P2, and place the stop loss above the last P3. Alternatively, and with the advantage of a more economic stop, one can also make use of trading from out of the correction.
The area around 13.20 USD serves as the 1st target; the 2nd target is located in the area around 12.00 USD and therefore at almost 15%.
If the price considerably exceeds the last significant high at 15.60 USD, we should abandon the short scenario.
Before trading, one should take news in the environment and from the company into account. Similarly, one should observe the overall market and in particular, the development of the gold price.
Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.