GoldCorp Incorporated (GG - NYSE) - Featured in the December 28th, 2005 CANSLIM.net Mid-Day BreakOuts Report with an annotated DailyGraph(R) as a "set up". When a leading stock is featured as a set up, many of the most relevant factors are noted in the report, and this allows prudent CAN SLIM(TM) investors to put the issue on their watch list. After doing any necessary backup research, investors may then stand prepared to act if and when the stock triggers a technical buy signal (breaks above the pivot point we give on more than +50% above its average daily volume). Of course, this is provided that they can handle a reasonable degree of risk that is always associated with owning stocks in the market. Note that in the event the featured stock fails to trigger a technical buy signal; and its price ultimately declines, or rises above the Max Buy price without the required volume conviction, the set up would simply be removed from the watch list.
Gold Corp did trigger a technical buy signal the following day on December 29th with an impressive breakout. The price traded above the pivot point and was driven by more than +50% average volume. With this technical buy signal, disciplined investors were able to take action within the proper guidelines of the method. In other words, that means being disciplined and not chasing the stock and buying it at prices more than 5% above its pivot point. Other gold stocks were continuing to act well and are a nice reassurance that GoldCorp was in one of the markets leadership groups and a leader within the group (the "L" criteria. Those investors that acted upon the breakout and purchased the stock were able to realize the large gains of 1/3/2006. Those that have continued to hold the stock have had the opportunity to realize even greater gains as the stock has remained in an upward trend and the price has remained above the 50 DAV, generally the first level of support.
You can start receiving the CANSLIM.net Mid-Day BreakOuts Report, the same report where GoldCorp, Inc. was first featured as a buyable breakout by signing up for a CANSLIM.net subscription below. Plus, you will get immediate access to the CANSLIM.net Featured Stocks Page. This web page lists a handful of high-ranked, leading stocks that are currently near ideal buy points and have bullish technical chart patterns.
When a leading stock is setting up to breakout of a solid base it may be highlighted as a noteworthy candidate in CANSLIM.net's Mid-Day Breakouts Report. Many of the most relevant factors are noted in the report, and this allows prudent CAN SLIM(TM) investors to put the issue on their watch list. After doing any necessary backup research, investors may then stand prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% above its average daily volume) provided that they can handle a reasonable degree of risk that is always associated with owning stocks in the market. Note that in the event the featured stock fails to trigger a technical buy signal, and its price ultimately declines, it would simply be removed from the watch list.
As mentioned in today's Market Commentary, "Gold stocks remain strong as the price of bullion reached a two week high. Gold futures for February delivery rose +$6.20 to $516.30 an ounce on Wednesday. Traders sent gold higher on speculation that central banks may buy more bullion to increase their reserve assets. Goldcorp Inc. (GG +$0.86 or 3.81% to $21.72) was featured in today's (Wednesday December 28th, 2005) edition of CANSLIM.net's Mid-Day Breakouts Report (read here) as a strong stock setting up to potentially breakout."GG is quickly approaching its $21.95 pivot point. However, recent distributional action and the fact that it hasn't quite cleared its prior highs are definitely reasons to stand back and watch for confirmation. After prices trade above the pivot point driven by more than +50% average volume, a technical buy signal will have been triggered, and then disciplined investors may be compelled to take action within the proper guidelines of the method. In other words, that means not chasing the stock and buying it at prices more than 5% above its pivot point. Other gold stocks continue to act well and are a nice reasurance that this is one of the markets leadership areas (the "L" criteria). Group strength will be likely to help this stock if or when a technical buy signal is ultimately triggered. As always, if you buy a stock and it starts to fall you must mind the 7-8% "max loss" sell rule to protect against greater losses.
