Detour Gold Corporation : Time to sell
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$11.18 | CA$0 | CA$12.1 | +100% |
Neither gold price nor company's profits are well oriented. The firm lost 38.5 million Canadian dollars in 2012. Further, analysts regularly revise downward their EPS estimates : they are less and less confident about the firm's ability to earn money.
As gold, the security is just below a major resistance level (CAD 11.9) which should, helped by the 100-day moving average, reduce the buyer flow. Thus, we expect prices to come back to CAD 10.
A short position can be opened at the current price in order to aim CAD 10, corresponding to the gap, opened on 22 July. A stop loss must be placed above the CAD 11.9 resistance.