KGC Looking UP - Market Analysis for Sep 2nd, 2011

Although the big picture view of the last four years of action in Kinross Gold Corporation (KGC) might not look like a classic bullish technical set-up, my intermediate-term work argues that the giant coil pattern has occurred in the aftermath of the stock's huge bull run from a low of 1.31 in October 2000 to its high of 27.40 in March 2008.

In other words, I view all of the coiling action since March 2008 as a giant digestion period of the prior bull move, which if correct also means that when the rest period is complete KGC should resume its dominant underlying trend, which is UP.

When might upside continuation occur? Soon, because during August 2011, KGC appears to have ended a correction from 17.92 to 15.05, and has recovered to retest the July high, which also places the price structure above its 11-month down trendline.

In addition, let's notice that all of my relevant medium weekly exponential moving averages have turned up since the May low at 13.84, and have converged around 16.50/60. They are positioned for a positive cross-over that will add conviction to my expectation that KGC is very close to the start of an explosive new upleg within its 11-year bull trend.