The last time we highlighted Agnico Eagle Mines Ltd (AEM.TO) in our Daily Stock Report was last summer on August 22, 2024. Back then, the shares were exhibiting a steady uptrend since February of last year. The initial bottom was in the summer of 2022. In the Spring of last year, the shares were deeply entrenched in the favored green zone of many of the reports it was found in on the SIA Platform including the SIA S&P/TSX Composite Index. The SIA Platform issued a Green favored Zone signal back on April 1, 2024, at a price of $83.22.
At the time of our last commentary on August 22, 2024, the shares were at $112.44 which represented an approximately 35% increase in price since the green favored zone signal. Since then, the shares have continued to strengthen further as the closing price is now at $154.86 which represents an additional 37% increase since August 22, 2024, closing price. This represents a total increase in price of approximately 86% since April 1 of 2024. Currently the shares reside in the #12 spot of the favored zone of the SIA S&P/TSX Composite Index report. This highlights the importance of staying invested in the green favored zone and reinforces SIA’s methodology of finding and staying with the winners which exhibit strong relative strength as many market participants are looking at the name.
In looking at the candlestick chart we see a steady pattern of higher highs and higher lows since February of 2024. There was a brief sideways consolidation in October 2024 to January 2025 as the shares paused to digest their gain since the move from February 2024. However, since January another upleg materialized when the shares broke above its prior resistance level at the $120.00 area. With such a strong move, it may be reasonable to consider another pause may to forthcoming in order for the shares to digest their gains once again. It will be interesting to see if this does materialize or if the shares will continue to forge higher with the price of gold bullion also making fresh all time highs. Based on a measured move resistance may be found at the $165.00 level.
Let’s dive in and see what the Point and Figure Chart looks like today. Point and figure charting excels in trend identification by offering a clear view of price movements and trend reversals. In our last commentary back in August we identified the shares were firmly entrench in a strong upleg when it broke above prior resistance at the psychological $100 level at that time.
We also identified upcoming resistance levels at $136.00 and $150.00 which the shares have already surpassed. As such in looking at the chart today, the uptrend in still firmly intact with a rising column of 16 X’s in place without even a 3 box reversal. With such a strong move, resistance may be coming at $160.43. To the downside, support is at the 3 box reversal of $142.46 and, below that, $136.92 which represents a 50% retracement.
With a SMAX score of 10 out of 10, AEM.TO is exhibiting strong near term strength against the asset classes and is exhibiting a bullish Triple top pattern.
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