Kirkland Lake: The “Amazon” of Gold Stocks?
Seeing lots of posts about KL lately, and wanted to share an update from the Nasdaq 100 perspective and my brief strategy. I’m in KL from 21.06 and have a +60% gain on my shares bought on October 12th, 2018, but I know some Goldtenters who are in from 5 or less. KL has appreciated over 1,300% since October 2015! Compared to a 75% gain for the Nasdaq 100.
Long term ratio of KL vs the Nasdaq 100 reveals an unbroken uptrend channel from early 2016. However, a strong uptrend became even stronger as the KL:$NDX ratio broke out of the top rail of the uptrend channel in December 2018. Indeed, while the Nasdaq 100 and broad market tanked from the beginning of October into December, KL’s shares showed the opposite behavior: posting higher monthly closes from October through February.
My simple plan for my shares is to continue holding until I see a weekly close below the top of the gap in the KL:$NDX ratio from November/December 2018. My bullish hope is that the ratio doesn’t fill that gap, but instead maintains the breakout above the top rail of the uptrend channel. Filling that gap would indicate to me that KL may have stopped outperforming the broad market, so that would be my exit plan if needed. For now, keep “HODLING” I suppose. -Harry
Thanks Harry for some back up!
I was watching carefully this week to see if it broke down much more.
Appreciate the charting. Thanks
Sure thing! I’d probably expect some short term weakness. KL:NDX can backtest the upper rail of the long term channel. A successful backtest would help confirm the thesis that this long term resistance line has flipped to a support line, and further market outperformance awaits in the future. Good luck to all KL holders!