I will admit it. I was thinking of not doing the Chart of the Day section today. And if you have read my post on how to trade markets such as these from earlier this evening, then you know the reason why. I will be damned if I know whether we end in the green or in the red tomorrow. But here lies the problem. As the regular readers of this blog (and thanks for being regular readers!), I started the Chart of the Day section just yesterday and I would hate to have a no show on just the second day. So, I must manfully carry on and come up with a pick. Now, I don't want to go with a momentum or breakout play as the market just doesn't seem to be treating right. I also don't wanna call a top or a bottom here. I am just thinking aloud here, so that you readers can know the thinking behind this play. Anyway, so I decided to go with a sector that has been performing well in the last few days irrespective of the markets being up or down. Yes, you guessed it right dear readers, I have decided to go with a gold miner for today's Chart of the Day.
AUY seems ready to make a big move here. I like the way how MA(50) has held up in the past few weeks and unlike most other gold miners I follow, it hasn't made any obscene moves to the upside with the recent run up in gold. 10.40 remains the key level and look out for a close above that. I also like the fact that inspite of the overall market action today, the stock had a narrow range day and managed to finish in the green.
Take care and good luck!