I am holding ABX. Would you advise averaging down?
That depends on where your average breakeven price is at. If the present price is far enough below your original price to bring down the average price enough, then its worth considering.
ABX completed its a-b-c downtrend. Wave 1 looks to be complete and the latest pullback is wave 2, whether that's a 5-wave sideways consolidation or a 3-wave pullback. Notice the golden cross, the 200-week moving average turning around, the increasing RSI and MACD, all good signs. Gold is firming up and I'm bullish on it. As gold heads higher, gold miners can make better profit margins and increase earnings.
Today's price is a little over 12% lower than my average acquisition cost.
Could be worth considering then.
Also, I like how the selling volume continues to die down.
Thanks. Your new format is great!
I appreciate that. I'm glad you like it.
Great Info. I was wondering about it as well.
Am I remembering correctly that there are 3 waves and that 3 is the longest and if indicators are bullish that is a gradual uptrend? I had taken a great profit a while back. My buy in price had been at $9 and change and I sold at $16 and change. Don't suppose it will go that low again but it is moving below my sale price and I was wondering whether to consider buying some again if there is an impressive uptrend still left?
Its pulled back to a zone of support now and its likely completed wave 2, either scenario. Wave 3's tend to be the longest waves, more times than not. Waves 5 can be the longest, but are not as common. Yes, I remember, your last profit was HUGE on it. That was a 77% gain. And as long as gold rises as I expect it to, it would only widen out the profit margins of these huge miners like ABX which would increase their earnings. And that would be bullish for the stock.
Once it holds at $19 or above, it should confirm that we're in wave 3.
I also like that its fundamentals have improved since gold's price is more favorable and has stabilized. https://finance.yahoo.com/quote/ABX/key-statistics?p=ABX
I'm still down on ABX from holding it for many years with you now. Currently thinking of averaging down after selling some others for profit as recommended. At current price I'm down about 12.5 to 13% vs my average buy in. Do you still like ABX fundamentally at this time to consider this? I haven't bought into the GLD since I've had a good amount of ABX. Appreciate your thoughts on this one!
It's forward P/E is a little higher than I'd prefer it to be but other than that, it's fine. And if gold continues to go up like I think it will, it could help compress that P/E with increased earnings relative to the price. So I can't tell you, one-on-one, if you should or shouldn't. Just know its more volatile than most. In LI, if we go into it, we'll likely go into a gold mining ETF. But yes, there's nothing wrong with averaging down on it. It's fundamentally strong enough.
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