Take a look at this 5 year monthly candlestick chart for I Am Gold (IAG). The breakout I’ve written about and anticipated looks like it is developing very well. Let’s review a chart to see what’s going on with its breakout.

I Am Gold (IAG) $5.87 Resistance Watch

The biggest obstacle in the way for IAG’s breakout is right around the corner at the $5.87 price level. The only possible negative indicator I see on the below chart is that July had low buying volume. But summer months are typically lower volume months in the stock market as all the brokers are vacationing in their Hampton homes….Otherwise, the below chart looks pretty bullish to me.

If the $5.87 resistance is broken and closed above by the end of August, buy all the dips for the next several weeks. Even consider practicing your day trading. I prefer to practice my trading when a stock is breaking out rather than breaking down.

Analyzing the Likelihood of a Breakout for IAG’s Share Price

My most recent trading strategy for IAG was to purchase any dips towards the $5 level. Those purchases are up over 10% in a relatively short period of time.

Once the $5.87 resistance level is broken, some share price advances could come at rapid paces so do not be too quick to sell shares unless you are day trading the stock. And if you are day trading the stock, keep a core position and trade around that.

Stop by the Idea Chamber and ask for an update on the trade at any time.