After releasing its earnings report just three weeks ago, Pretium Resources share prices surged. Since then, the stock has been consolidating and a symmetrical triangle pattern has formed on its chart.
Pretium Resources Inc (PVG) is an exploration and development company engaged in the acquisition, exploration, and development of precious metal resource properties in the Americas. PVG was able to continue mining gold while many other companies suspended operations last quarter due to COVID-19. The company reported production of 90,419 ounces, and forecasts 325,000 ounces to 365,000 ounces for all of 2020.
Take a look at the 1-year chart of PVG below with added notations:
Chart of PVG provided by TradingView
PVG has formed a symmetrical triangle (green). As the support and resistance converge on each other, the pattern is created. Since there is no true way to know which way the stock will break, most traders will wait for the breakout or breakdown before entering a trade.
A trader could enter a long position on a break above the down trending resistance. Or, if PVG were to break below the trend line support, a short trade could be entered.
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PVG shares were trading at $12.30 per share on Friday morning, up $0.05 (+0.41%). Year-to-date, PVG has gained 10.51%, versus a 9.55% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.Why I Expect a Big Move in Shares of Pretium Resources (PVG) appeared first on StockNews.com