With gold prices hovering above $750, US Gold Corporation (NYSE:UXG) 4.68 -6.77%, vol: 1,740,000) is definitely one gold exploration stock you want to keep your eyes on.
Check out my updated chart for UXG:
UXG still has a number of positive fundamental and technical points in its favor:
US Gold controls one of the largest land packages in Nevada next to major gold producers. A high percentage of insider shares is owned by Rob McEwen, the former CEO and Chairman of Goldcorp (NYSE:GG): 33.10 +1.75%, vol: 8,051,170. The chart points out that we are in oversold territory according to RSI and approaching oversold territory according to MFI. The price is going down without a large short position.
I would wait till I see a bullish centerline crossover before adding more shares or opening a new position in UXG. When we see a crossover I am guessing UXG will very quickly rise to $6-$6.50 levels. It makes no sense to try and catch a falling knife when there are plenty of quality gold producers that I consider undervalued.
Disclosure: The author owns a position in UXG.