I bought 300 shares of AEM at $46.85. I’ve been waiting for a pullback to support in gold and it looks like we’ve finally got one. Stochastics have reached extremely oversold levels and obv has dipped to a support level on low volume.
There are a few reasons to be skeptical about this trade. It’s always tough entering into a sector when the rest of the market is up and breadth levels are close to 2-1 to the upside. Also, today’s price bar is long to the downside, which is not ideal. If volume had been extreme on this pullback, that would have been a dealbreaker. However, since volume is still lighter than the updays, I’m was willing to take a small feeler position.