Wednesday, June 6, 2012

Agnico-Eagle Mines Ltd. (NYSE: AEM)

Agnico-Eagle Mines Limited is a Canada-based international gold producer with mining operations in northwestern Quebec, northern Mexico, northern Finland and Nunavut and exploration activities in Canada, Europe, Latin America and the United States. The Company operates through four segments: Canada, Europe, Latin America and Exploration. The company is a multi-mine international gold producer with five operating, 100% owned mines. The company's mines include the LaRonde Mine, Goldex Mine, the Lapa Mine, the Kittila Mine, the Pinos Altos Mine and Meadowbank. Meadowbank, in Nunavut, achieved commercial production in March 2010. During the year 2010, the company produced 985,460 ounces of gold.

To analyze Agnico-Eagle's stock for potential trading opportunities, please take a look at the 1-year chart of AEM (Agnico-Eagle Mines Limited) below with my added notations:

Over the last week or two, AEM has made a nice move higher against the overall market thanks to a corresponding move higher in gold. Specifically, you will notice the $40 support (blue) from back in November that became the $40 resistance (navy) from January through May. So, the $40 price was a key level to this stock. Last week AEM broke above the $40 resistance.

The Tale of the Tape: AEM has recently broke through its $40 resistance, thus should be moving higher. A long trade should be made at or near $40 with a stop placed under that level. A break back below $40 would negate the forecast for a move higher.

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