A TSC member request came through for an update on the breakout for I Am Gold (IAG). So let’s dive right into the charts!

I Am Gold Breakout Update

This first chart for I Am Gold breakout update is a 3 year weekly candlestick chart. I’ve placed 3 different colored Fibonacci Extension Tools on the chart to analyze for confluence areas that make sense based on a probable Wave 3 developing in a Bullish Impulse wave pattern. Take a look.

Analyzing I Am Gold’s Chart for Confluence Areas From the 3 Fibonacci Extension Tools

The black 100% and 161.8% Target Lines are the main ones to focus on – they are the longer-term price projections. From a longer-term perspective, IAG’s share price has not yet reached its Golden Ratio for the current uptrend. Either the top of Wave 3 or its next wave should help it to reach its Golden Ratio.

Speaking of Wave 3. I see Wave 3 as still in process. The pullback over the last 2 weeks is probably signaling that Wave 3 is almost over though. As long as IAG finds support and reverses this week, I would continue staying long until IAG’s share price reaches closer to the $7.97 – $8.32 price level. Use the re-test of the $5.89 area as an opportunity to repurchase any sold shares during its uptrend.

Previous Resistance Area Now Support

Remember, the $5.89 was previously resistance but that area should now offer support. The re-test appeared successful last week but wait for confirmation this week before reloading shares. There could be a continued drop early in the week that again reverses by weeks end.

Confirmation this week would involve IAG’s share price back above the $6.50 price level by week’s end. If things look positive during the week, don’t wait until week’s end to reload though. Breakouts after sharp drops like this can creep back up fast.

Another indication that the uptrend is moving back up will be a MACD Histogram that starts to show an increase in buying momentum again. Monitor that on a weekly chart like I have above.

IAG – Moving Average Analysis

This chart for I Am Gold (IAG) is a 1 year daily candlestick chart. I prefer to analyze Moving Averages using daily charts. I’ve made a couple of notes on the chart so go ahead and click on it to view it full screen and read the notes.

Analyzing I Am Gold’s (IAG) Share Price Activity Using Moving Averages and Elliott Waves

Any strong uptrend should find support at its 50 Day moving average. During a new uptrend, the first pullback to the 20 Day moving average is purchasable. That seems to support my above analysis using the Elliott Waves.

The 50 Day moving average is right below the previous resistance area of $5.89. I anticipate that IAG’s share price drops no lower than the 50 Day moving average during its current pullback.

I Am Gold Breakout Summary

Most breakouts tend to re-test the breakout area. The I Am Gold breakout appears to fit the “statistical mold”. Now, let’s make sure its share price continues to perform up to expectations.

Look to possibly reload sold shares during the current week and hold those shares until at least a new 52 week high is made. I identified the range where I think the new 52 week high will be and that is in the $7.87 – $8.79 range.

A break below the 50 Day moving average will also mean a break back below the previous resistance area. That previous resistance area should now be support. So if a break below it happens in heavier than normal selling volume, then back to the $5 price level we go.

But do not get excited, that is not at all what I anticipate right now. Instead, watch for a reversal in the next week or two and a continued advance for IAG’s share price towards its upside price objectives.