KGC testing 50-day MA
I have taken KGC as an example, but other mining stocks are in a similar situation. Speculative money is fast exiting the sector, but the sell off has pushed prices down to the 50-day MA. Looking at the chart for KGC, the chief difference between now, and the previous 50-day MA test, is the state of the MACD. Short term, expect more downside - but watch how the MACD behaves, if it starts to indicate a potential bullish cross, then KGC will be a good intermediate term play (3 weeks - 6 months).
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vFsbibXSJMVb20VxsACp0ab-U7exsAm14j_lw6cHovMeAq1-7KWovwzZTFgEWuKv2bFg6UqfqUb5RfvVDaa_KKvzvC71qUzJ4Pzj1eL9j_auJhvg=s0-d)
KGC
KGC