Agnico Eagle Mines Ltd. - (AEM.TO) - April 12, 2024

With the price of Gold soaring to new all-time highs, gold producers have been climbing in relative strength rankings. For the last two months, Agnico-Eagle Mines (AEM.TO) has been climbing back upward within the SIA S&P/TSX 60 Index Report. After falling through the first six weeks of this year, AEM.TO was deep in the red zone in February but since then, it has made its way back up into the Green Favored Zone for the first time since June.

Yesterday, AEM.TO finished in 12th position, up 2 spots on the day and up 24 places in the last month. Over the last month, the shares are up 12.5%, compared with a gain of 1.6% for the S&P/TSX Composite Index. The technical picture for Agnico-Eagle Mines (AEM.TO) shares continues to turn increasingly positive. After bottoming out in the summer of 2022, the shares initially bounced up into the $60.00 to $80.00 range where they laid the groundwork for a recovery. For the last eight weeks, the shares have consistently climbed indicating renewed accumulation.

Most significantly, two weeks ago, AEM.TO gapped up through the $80.00 channel top, completing a bullish Ascending Triangle pattern and signaling the start of a new advance. Since then, the shares have continued to climb and the $80.00 breakout point has reversed polarity to become initial support.

A measured move from the recent trading range, a round number and the 2020 peak combine to suggest that next potential resistance may appear near $100.00, followed by $110.00-$112.50 on trend.

A major breakout is underway in Agnico-Eagle Mines (AEM.TO) shares. From September of 2020 through July of 2022, the shares trended steadily downward. Since that turning point, the shares have been steadily recovering. Following an initial recovery rally that ran through to May 2023, the shares trended sideways, consolidating their initial gains and building a base for their next move.

Since February, the shares have been attracting renewed interest climbing from near $60.00, toward $85.00 without even a 3-box correction along the way.

Bullish Triple Top and Spread Double Top breakouts confirm renewed interest along with the shares recently breaking out to their highest levels since early 2021.

Based on previous column highs and lows plus a horizontal count, next potential upside resistance appears near $92.15 and $103.75 on trend, the latter at the 2020 peak just above the $100.00 round number. Initial support appears near $77.10 based on a 3-box reversal.

With a perfect 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, AEM.TO is exhibiting short-term strength across the asset classes.