My near- and intermediate-term work on Kinross Gold Corporation (KGC) indicates strongly that a significant low was established at 9.96 on Jan 19 and that the upmove to 11.95 on Jan 26 represents the initiation of an intermediate-term recovery and/or bullish period.

The target for the first upmove is 12.50/60. As for the extreme near-term weakness off of last Thursday's (1/26) rally high at 11.95 into today's low at 11.15 (so far), my micro pattern work points to 11.10-11 to contain the weakness prior to a resumption of strength that propels the stock to 12.50/60.

Can that happen at the same time gold prices are correcting amidst USD strength? Yes, KGC can exhibit independent strength, but only if a major low has been established in the aftermath of KGC's 50% "haircut" between 9/8/11 and 1/19/12.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.