Pre-Market Alert: Possible Plays on ABX and AEM

Gold Prices Blasting

By Bryan Bottarelli
Wednesday, September 16, 2009 9:26 AM EDT
Wed, 16 Sep 2009 13:26:00 GMT

Dear Bottarelli Research Member,

Good morning. During yesterday’s trading session, I toyed with the idea of adding upside calls on gold plays such as ABX or AEM. From a chart perspective, ABX looked like it was setting a nice interim support level, while AEM was on the verge of an upside breakout. You can see both charts (as of yesterday’s close) below.

ABX

AEM

This morning, gold prices are shooting higher — up $13.00 as I write. This has put gold solidity over the $1,000 level, which indicates that we will not see selling pressure come in at this level. I wouldn’t be surprised to see gold prices hit $1,200 before the year’s end. Therefore, it could very well be time to jump into AEM or ABX calls. As the markets open, be prepared to ride the momentum on either of these two plays. We’ll go with whichever play looks the best once we begin the trading session.

As always, I’ll keep you fully informed on when to pounce. This is just a head’s up to get ready to ride gold. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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