Buy Goldcorp Inc. (USA) (NYSE:GG) On All Dips

Denver, CO, 08/16/2013 (Avauncer.com) – Goldcorp Inc. (USA) (NYSE:GG) (Closed: $31.27, Up: 6.18%) is another stock that is benefitting from the rebound in gold. The stock opened flat on Thursday but started rallying in 2 hours to spike up and later closed near the high. The volume at 13 million was much higher against the average volume of 8 million as the market participants searched for a proper hedge against their other investments in equity.

The stock had its cleanest rally in the period of 2004 to 2006, when it rose to $41.66 from a low of $10. The bull market of 2007 – 2008 saw it reaching $52.65 in 2008, and then a crash to $13.84 by the same year. All the losses were recovered by the way of a very laborious rally in the period of 2008 to 2011 and a fresh high was made at $56.31. The next bear market is searching for a bottom and yet to fully confirm a long term bottom. The current low of $22.22 made in June 2013 looks promising but more confirmations are required.

The drop from the 2011 top is nicely contained in a falling channel and the last low of $22.22 was made at exactly the trendline. Interestingly, the entire fall from the secondary top of $47.42 made in September 2012 is perfectly contained in another falling channel which was broken in the last week of this July. The next two weeks saw the price testing the channel upper boundary and bouncing. In the process, an Inverse Head & Shoulder was created, a bullish pattern with the neckline at $29.80. The price broke out of this pattern yesterday and triggered a breakout move towards the targets of $34.80, which coincides with the 50% retracement level, and $37.60 which coincides with the 61.8% retracement level.

Investors should buy this stock on any dips now.