AYS1 trade ideas
Which way for Sandstorm Gold?Been in a downtrend since August 2020.
Now repeatedly testing the upper downward channel.
Not much volume though, but upward sloping RSI on the weekly chart.
Is this the right time for a breakout?
You decide. This is not a recommendation to trade (i.e. buy, hold, sell or initiate any other transaction).
Sandstorm Gold Ltd. BullishSandstorm Gold ( NYSE:SAND ) stands to gain significantly from the surge in gold prices. Despite accruing substantial debt to acquire new assets in 2022, currently bearing interest rates of 7-8%, this has cause downward pressure on the company's stock . However, the recent appreciation in gold prices offers a silver lining, enabling quicker debt repayment and initiating a buyback program.
This overlooks the possibility that falling interest rates could substantially ease debt repayment obligations.
Furthermore, the newly acquired assets promise additional revenue streams, bolstering debt repayment capabilities and buyback initiatives. Investing in Sandstorm Gold can be viewed as a leveraged play on gold, potentially yielding higher returns compared to holding physical gold alone. Yet, it's crucial to note that any downturn in gold prices could spell trouble for the company's share price, exacerbating its debt concerns.
In essence, Sandstorm Gold resembles a low-cost, at-the-money call option on gold.
The blue arrows marked my entry points and 4.72 is my avarge price/share.
Gold royalty streamers oversoldAs a group, gold royalty streaming companies reacted negatively to the drop in gold price on February 13, 2024. This movement was triggered by US CPI for February printing slightly higher than expected by consensus, on the index and also MoM and YoY readings.
Reaction was an immediate spike in TVC:DXY and commensurate selloff in FX_IDC:EURUSD . This dragged risk assets down, with equities markets getting hit. TVC:GOLD also lost more than 1% in lockstep reaction.
The opportunity here is in the unwind of yesterday's outsized movement amongst the gold royalty streaming companies as a group. While some have performed better than others over the past year, they were all punished on this move. Typical drawdown was 10% on the day .
For consideration: A) a short term buy of one of these names and holding to pre-CPI price level, or B) a longer term entry for those with a bullish view on gold and appetite for leveraged exposure and desire for dividend income.
Missed on financials, Expected betterHopefully, bullish sentiment in metals will carry this. Bit of a miss here on financials, expected better performance, falls short, not a total miss, but definitely falls short. Future looks good, but this might be oversold short term, I'm looking for a pull back and sellers unless the market carries this. Good luck
LONG GoldI'm looking to get into SAND December calls.
~Gold Is looking really good and going off of past history, end of November is a big run for gold and silver.
~SAND has a nice looking inverse Head and shoulders going on.
~SAND also bounced off of the long term support
8 Bucks is my PT, as that will have the most resistance. I will also be watching if it breaks out above the resistance line.
2021-03-27 Sandstorm 1D - longPrice has broken downward trendline on daily chart.
Price is reacting off of 61% fib retracement of last leg up on weekly and monthly charts.
Price is reacting off prior resistance (peaks) on weekly and monthly charts.
Price is back testing downward trendline on daily chart.
Looking to go long at this level and on break above last peak on daily chart