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This Is Your Second Chance
in the Gold SectorWhere will some of the biggest profits of the year come from?
Gold stocks.
That’s right, gold is the .Gold has risen for nine years straight — not a single year of negative returns! Do you know of any other asset class that can make that claim? And this year will be no different.
So, while I’m sure there are plenty of you out there kicking yourself for missing the gold run in 2009, you can stop beating yourself up over it now. Because the profits to be had in this sector will blow last year away, especially if you invest in the following five gold stocks that I think will double (or better!) in 2010.
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Gold Stock #1 – Nevsun Resources Ltd. (NSU)
Nevsun Resources Ltd. () is a gold and base metal mining and exploration company. The stock broke out of an inverted head-and-shoulders pattern in 2009. In 2010, it should challenge its all-time high near $4, which was made in April 2006.
Once that $4 level is broken, the pattern will turn into a large with a target of at least $6, which is a near triple from current levels. .
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Gold Stock #2 – Allied Nevada Gold Corp. (ANV)
Gold producer Allied Nevada Gold Corp. () has broken out of a bullish , has favorable indicators and oscillators, and lacks any overhead supply.
The lack of overhead supply in many of the gold stocks on this list is what makes the potential for their move up so monumental. When stocks are making new all-time highs like ANV is, you don’t run into what I like to call “pissed off supply.” You see, when investors buy a stock during a long bullish uptrend, and then that stock starts to sell off, people who bought on the upswing and held it through the downtrend look to sell at their first chance to break even when the stock starts to head back up, thus creating huge . But when a stock is breaking out to new all-time highs, you don’t run into that problem, because no one has ever owned the stock at these levels.
My target for ANV is in the mid-$20s. .
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Gold Stock #3 – Rubicon Minerals Corp. (RBY)
Gold exploration company Rubicon Minerals Corp. () also broke out to new all-time highs in 2009, and currently has no overhead supply or .
Here the tells us that RBY looks to be in a parabolic move up and is showing no negative divergence.
My conservative target for RBY is $9, which is a near double from current levels, but I expect the stock to clear that target and head even higher. .
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Gold Stock #4 – Richmont Mines Inc. (RIC)
Canadian gold miner Richmont Mines Inc. () looks like it’s getting ready to break out of an inverted head-and-shoulders formation.
Once it does, its last area of resistance will be the all-time high around $5, where it’s likely the stock will pause before breaking out to new highs.
My target for 2010 is in the $7 range, but I see RIC heading to $10 in 2011. .
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Gold Stock #5 – Entree Gold Inc. (EGI)
Finally, we have exploration-stage company Entree Gold Inc. ().
EGI is in a very rare, bullish reverse symmetrical triangle. This chart pattern has a failure rate of only 2%, which means there is a 98% chance that the stock will be successful in reaching the top trendline around $6, which would be nearly a triple from current levels. .
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