Gold stocks have risen, even after the Federal Reserve decided to keep interest rates unchanged. So it wasn’t surprising to find a few gold mining stocks filtered in my StockCharts Technical Rank (SCTR) scan. (This scan was created using StockCharts’ Advanced Scan Workbench and can be found at the end of the article for reference.)
I selected Alamos Gold, Inc. (AGI), a gold mining stock in the materials sector for further analysis. Gold mining stocks have been rising, as have gold prices, and, with AGI trading at around $21, the stock is worth considering as an addition to a portfolio.
A Deep Dive Into Alamos Gold
AGI has had an interesting run since late 2022, after it broke out of a shallow downward-sloping sideways range. The stock rode higher, moved sideways for almost a year, and then continued its upward trend. It pulled back again from late October 2024 to January 2025; it is now trading above its 21-week exponential moving average (EMA) and challenging its all-time highs.
When a stock reaches its all-time high, that could be an incentive to go even higher. But there needs to be momentum. There are a handful of momentum indicators you could use, such as the relative strength index (RSI), moving average convergence/divergence (MACD), and average directional index (ADX).
Let’s look at the daily chart of AGI to identify potential entry points.
FIGURE 2. DAILY CHART OF ALAMOS GOLD. The SCTR score is 82.50, the price is very close to its 52-week high (in this case, an all-time high), and RSI is almost 70. The stock is also trading well above its 15-day EMA.Chart source: StockChartsACP. For educational purposes.
The Distance to 52-Week Highs indicator in the lower panel shows AGI is close to its 52-week high. The SCTR score is above 80, volume is picking up, the stock is trading above its 15-day EMA, and the RSI has been trending higher, just shy of 70. All indicators point to AGI retaining its bullish move.
AGI failed to close at a new all-time high on Thursday. It’s worth monitoring the stock’s momentum to see if it can close at a new high and push through it. If not, consider catching it on a pullback and trying to ride the wave up. It could be a golden opportunity.
However, as we know too well, things can change. If the dynamics of AGI start shifting — i.e. the SCTR score falls, the stock price moves closer to its 15-day EMA, or the RSI reverses and approaches the 50 line — then it may be time to exit the stock.
As always, if any of the indicators start reversing, which would suggest that the stock’s strength is declining, you may be better off moving on to find more promising investments.
The SCTR Scan
[country is US] and [sma(20,volume) > 100000] and [[SCTR.us.etf x 76] or [SCTR.large x 76] or [SCTR.us.etf x 78] or [SCTR.large x 78] or [SCTR.us.etf x 80] or [SCTR.large x 80]]
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.