Alamos Gold AGI-T built a large base within a horizontal trading range mostly between $9.00 and $11.50 for about two years (dashed lines). On December 21, 2022 ($13.60) we reported a breakout and suggested targets of $14.00 and $15.50. The stock rallied to a high of $19.19 in May for a 41% gain since our report (A).
Alamos became overbought at this time and was far above the 40-week Moving Average (40wMA); it pulled back and found good support at ±$15 (shaded area). The recent rise above $18 signaled the resumption of the uptrend (B).
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support near ±$17; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $20 and $22. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com