Amid growing concerns about the health of the US banking sector, gold and gold producers have been attracting renewed interest from investors. Eldorado Gold (ELD.TO) had soared up the rankings back in November driving up from the red zone to the Green Favored Zone. Since returning to the Green Zone, the shares have returned 11.8%. On Friday, Eldorado climbed 2 spots to 19th place.
Last summer, Eldorado Gold (ELD.TO) shares established a base of support near $7.00 and since November, they have been under renewed accumulation. Over the last five months, a new uptrend of higher lows has emerged and the 50 and 200-day moving averages have completed a bullish Golden Cross.
Recently, the shares have been trading in the $11.25 to $13.50 range with initial support at the 50-day average near $12.25. A breakout would signal the start of a new up-leg with potential upside resistance tests on trend possible near $14.50, $15.75, $17.00 and $19.00, all based on measured moves, plus the $15.00 round number.
Since breaking out of a base in November, Eldorado Gold (ELD.TO) havenāt looked back, starting with a big High Pole rally that snapped a downtrend and completed to bullish Spread Double Top breakouts. Following a moderate correction, the shares have broken out again this month, completing a bullish Double Top and a Bullish Catapult.
Previous column highs suggest potential upside resistance may appear near $15.50 or $18.85, with a horizontal count suggesting possible resistance near $16.45. Initial support appears near $12.20 based on a 3-box reversal.
With a perfect SMAX score of 10, ELD.TO is exhibiting strength across the asset classes.
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