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Wesdome Gold Mines Ltd. (WDO.TO) - March 11, 2024

With the price of Gold soaring to new all-time highs over the last few days, Gold stocks have been rallying as well and moving up the relative strength rankings in the SIA S&P/TSX Composite Index Report.

The highest ranked gold producer with a price above $5.00 is Wesdome Gold Mines (WDO.TO), which has climbed 23 positions over the last month to 10th place. Wesdome Gold Mines spent the second half of 2022 and most of 2023 stuck in the Unfavored zone of the SIA S&P/TSX Composite Index Report, then popped up into the Favored Zone in February for the first time since July of 2022. Since returning to the Favored Zone, WDO.TO is up 8.5%, while the S&P/TSX Composite Index is up 3.7% over the same period.

Candlestick Chart Breaks Out of a Big Base A major breakout is underway in Wesdome Gold Mines (WDO.TO) shares. Accumulation started about a year ago near $7.00 support, with higher lows indicating renewed accumulation. Over the last two weeks, WDO.TO has completed two bullish Ascending Triangle breakouts, over $9.50 and then over $10.00 to signal that a new recovery trend is getting underway.

Initial upside resistance may appear at a summer 2022 high near $11.25, followed by $12.00 and then $14.00 on trend, which are based on measured moves. Initial support appears at the $9.50 recent breakout point.

Point and Figure Chart Launches into a New Uptrend A downtrend in Wesdome Gold Mines Ltd. (WDO.TO) bottomed out about a year ago. Since February of last year, an upward trend of higher lows has been emerging, indicating renewed accumulation, but the overall trend remained one of sideways base-building.

In January, WDO.TO successfully retested $7.00 support and has launched upward from there, completing bullish Double Top and Spread Double Top breakouts, snapping a downtrend line, building a bullish High Pole and climbing back up over $10.00 for the first time since August of 2022.

Potential upside resistance levels appear near $10.85 based on previous lows, $13.00 based on previous highs and $14.05 based on a vertical count. Initial support appears near $9.25 based on a 3-box reversal.

With a perfect bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, WDO.TO is exhibiting short-term strength across the asset classes.

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