As Gold Stocks Rally, do we take some Profit? Identifying trades and investment opportunities is only half the game, we must also manage the position...

Nicholas Forsyth

Market Matters

As Gold Stocks Rally, do we take some Profit? Identifying trades and investment opportunities is only half the game, we must also manage the position constantly and evaluate the evolving risk and reward. We bought the gold sector in late November and when I see financial journalists now discussing the merits of gold companies for 2015, after the recent significant strength, the cynic in me considers taking some profit! Since advocating buying gold stocks in late November 2013, the precious metal itself has rallied 9%(more in $A), Newcrest(NCM) +45% and RegisResources(RRL) +56%. During the same period, the ASX200 is basically unchanged. The consensus analysts' view on the gold price is US$1,200/oz. hence adding to my confidence the precious metal can rally to $US1,400/oz. My current view of the dominant parts of the gold sector is: Gold - I remain bullish, targeting the $US1,400/oz. region for this current advance. NCM - I remain bullish targeting the $14 region. RRL - has exceeded my initial target area of $1.80-$2.00 and the $2.50 area has become a possibility. Barrick Gold(ABX.US) - Still no buy signal generated. See Full Report (VIEW LINK)


Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

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