IAG Gold Breakout Looming

As the market rally continues, several covered stocks enjoy making new 52 week highs or are close to their highs. I Am Gold (IAG) has bounced back from a lower support area around the $3.65 mark and currently sits right above the $5 price level. IAG's share price has since pulled back to the $5 price level after it reached my calculated target zone of $5.50 - $6 last week.

But what sort of price action appears to be on the horizon for IAG? Is an IAG gold breakout looming? Let's start by reviewing its longer-term charts to establish its long-term trend.

I Am Gold (IAG)

This first chart is a 5 year monthly candlestick chart for I Am Gold (IAG). A monthly candlestick chart will give an indication to IAG's overall trend at the current time.

The MACD Histogram on a monthly candlestick chart represents long-term buying momentum. It seems very bullish that IAG's buying momentum is starting to increase again as its share price makes its way towards its overhead resistance area from the Bearish Engulfing candlestick pattern.

Combine the increase in buying momentum from the MACD Histogram along with an increase in actual buying volume and the result should be…...

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