As I have said in previous posts, I am not a great fan of gold companies...especially young penny gold companies. There are a lot of scams and should-be-considered scams in the penny gold company culture.

BRE-X comes to mind as classic scam on which many people made and ultimately lost a fortune. Read this for those of you who play the markets but are under 30 years old:Bre-X - Wikipedia, the free encyclopedia

Aside from scams, I don't like gold because there is little industrial use for the metal anymore, it is not the standard by which currency is founded (the USA's green back is hardly backed by gold the way it is being printed lately) and it has not been the safe haven for investors. Often in the past year you see the price of the metal fall...along with everything else. Also you will find that often the price of gold rises but for some reason gold company stocks don't rise as fast but conversely they fall fast when the metal price falls.

Here is the chart for gold metal prices:



You can see that November has seen a sudden spike in the price of gold from about $740 to $820/oz. But look very closely at the end of the chart....it looks like the ride might be over as the price seems to be reaching a crest.

Having said that, if I were to invest in gold companies I would probably consider only large, well established producing companies such as:

GoldCorp (TSE:G.TO; NYSE:GG) or Barrick Gold Corporation (TSE:ABX.TO; NYSE:ABX) which the stock is priced in the $30.00/share range

Kinross Gold Corporation (TSE:K.TO; NYSE:KGC) priced about $15.00/share

IAMGOLD Corporation (TSE:IMG.TO; NYSE:IAG) priced about $5.00/share

There are others...lots of others...but these are the only ones I would touch personally

So let's look at the cheapest of this lot, IAMGOLD Corporation, here is a summary of this Canadian company

Here is the Pincher chart

IAG - SharpCharts from StockCharts.com

Rremember I said that the price of a stock does not reflect the price of gold earlier....well that certainly happened here. The gold price shot up in early November...the price of IAMGOLD did not take off until this last week...when the gold lemmings are entering the gold stock market...IMHO

There was a pincher back on Oct 27...the price rose About 80% ...love those pinchers...then lost those gains(while the price of gold rose..can't say that often enough) and not the stock is taking off and it is no longer a pincher situation.

Here is my regular Sharpchart

IAG - SharpCharts from StockCharts.com

The stock looks quite bullish now....in the last few days it has positively crossed its 20dayMA and 50dayMA ending up above the upper Bollinger band...very nice. The bollinger bands are expanding reflecting the jump in price, the RSI, MACD and Accum/dist are all positive.

Here is the P&F chart



Nice run...but it stopped at a resistance point of $4.50 if it passes that the next resistance is at $4.80

Support is at about $4.00 and then at $3.70

Here is the BigCharts.com 5 day Candlestick chart



You can see that support around $4.00....it looks to be quite solid...you can also see it losing steam as it reached $4.50. If the $4.50 resistance is broken then it will go to $4.80. The $4.50 would then be a support.

I would be careful with this and watch the price of Gold metal...the chart at the beginning will update automatically. Watch to see if you break $4.50.

I expect sideways motion for a while since the gold price looks to be cresting. If the price falls...I would get out of this stock (and other golds) quickly....Good luck.

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I am not a stockbroker. I retired four years ago and learned charting. The opinions expressed in my posts are my own. Do your own DD and accept or reject my comments as you please.