With gold prices reaching new all-time highs, gold producers have been climbing in relative strength rankings. Over the past four months, Agnico Eagle Mines (AEM.TO) has been steadily rising within the SIA S&P/TSX 60 Index Report. Currently, AEM.TO is jostling for the top position, competing with Kinross Gold Corp for the #1 and #2 spots during the summer months. The technical outlook for Agnico Eagle Mines (AEM.TO) remains positive, as indicated by its strong performance in the SIA S&P/TSX 60 Index Report. After bottoming out in the summer of 2022, the shares initially rebounded to the $60.00 to $80.00 range, setting the stage for a recovery. By early 2024, the shares have consistently climbed, breaking through the $80.00 level and signaling the start of a new uptrend. A measured move from the $60.00-$80.00 trading range has led to the next level identified in the April report, near $100.00, and subsequently to the $110.00-$112.50 range, where the shares are currently trading at $112.44. Given the strength of the precious metals sector, the candlestick chart helps establish new support levels. The chart highlights two significant breakouts: one from the April report and another, marked as Breakout #2, occurring recently. These breakout points now become new support zones, providing a stable base for further gains. Since the last report, the shares have rallied nearly 40%, raising the question of whether AEM.TO has further upside potential. The SIA coach Relative Strength data suggests that both the sector in general and the company specifically are well-positioned for additional gains.
To further refine support levels, the point and figure chart is utilized. Point and figure charting excels in trend identification by offering a clear view of price movements and trend reversals. In the P&F chart, the former resistance level at $101.14 has now become strong support, indicating continued upward momentum. It would not be surprising if Agnico Eagle Mines shares took a breather and consolidated around the $90-$100 level, which could serve as a healthy test of support before any next leg up. Based on previous column highs and lows, the new technical price objectives are well above current levels, at $136.12 and potentially $150.28. The $150 level is also significant as it could serve as a psychological barrier. With a perfect SMAX score of 10 out of 10, AEM.TO continues to exhibit strong short-term performance across asset classes.
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