Buy the stock of Goldcorp Inc. (USA) (NYSE:GG) with the Target of $38

Goldcorp Inc. (USA) (NYSE:GG) (Closed at $23.51, Up 1.25%) is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America. The stock of Goldcorp Inc. (USA) is been consolidating within the wide range of $20 and $30 from almost one year. The company pays dividends to its shareholders every month and is doing it consistently from the past so many years. The stock is in long term correction phase in which pullbacks are always seen and some strong ones when stock goes oversold.

Technically speaking the price charts of Goldcorp Inc. Has formed an inverse head and shoulders which is a bullish pattern. The stock broke out of the pattern in the month of June this year and is now retraced to the area of right shoulder taking some support near $22.5 and bouncing with volumes. During the breakout, the volumes were increased which shows the buying interest in the stock and from then the trend of the volumes is increasing. There is positive crossover of 50 and 200 SMA in the price chart which means the stock is in buying zone. The positive crossover in MACD adds to the buying momentum.

Currently, the stock can be bought near its market prices with the strong supports of 20$ as their stop losses. The targets of $38 can be expected over a period of 4-5 months. Investors can hold this stock with medium term perspective.

 

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