TA Spotlight - AEM

Long term holders of Agnico Eagle probably noticed the waterfall decline and parade of investment house downgrades in the fall of 2008. The price and volume action since the breakdown has been revealing. The October swing low has been tested on shrinking volume several times. This subtle shift between supply and demand at support suggests a bullish setup. The old school tape readers know that whatever cannot brake support/resistance in force will reverse and attempt to break resistance/support in force. The overhead gaps were created on heavy volume, so it will take a fair amount of upside energy and/or time to chew through them.

Agnico Eagle Mines Ltd. (AEM):


The AEM to gold ratio give an excellent long-term perspective on AEM.

AEM to Gold Ratio: