KGC has strong bullish technicals; breaking $500 could lead to prices of $630-$645.

Okay, KG. As I can see in this chart, we rose significantly during June after Jason brought this stock to our attention in the spring, but we have fallen significantly from those levels.

So, what do you see in the technical analysis here?

I believe this is the best chart for the best company in terms of technical analysis, out of all the charts we have talked about today. Did we see the stock rise to around $637 and then fall?

Yes. However, if we look at the daily chart for a year, we will find that it was actually a 50% correction from the highest price to the lowest price, and there we found support around the $300 level .

At this time last year, we were recording higher highs and lower lows. We are now witnessing a decline. We were able to take advantage of the 200-day moving average as a price attraction zone, and buyers tried to enter, and they have now managed to break above the 20, 50 and 200- day moving averages in the secondary downtrend, if we look at the peaks of this cup pattern.

We are also trying to break through this level. Therefore, this is a relatively positive indicator. We still have a price gap before reaching those peaks. There is a price gap between $550 and approximately $610.

This is a factor that may also influence the price. However, if we look at the weekly chart, we will find strong bullish indicators , because we have seen a period of consolidation over the past two or two and a half years or so before we have seen this strong breakout.

Once again, we are seeing a 50% downward reversal , taking advantage of the 50-week moving average as a support zone, after breaking through the 200-week moving average or the 20-week moving average (in blue).

This is also a strong bullish indicator. The MACD indicator at the bottom appears to be about to break down and turn into an upward pattern as the 12-week exponential moving average crosses the 26-week exponential moving average .

The last time we performed this analysis, the stock price rose by approximately 500%. I'm not saying this will happen this time, but long-term charts at MACD crossovers tend to show better continuity than some short-term charts.

This graph looks upward. If it manages to break above 500, the price may return to around the 630 or 645 level . Okay, Jason. Therefore, KGC is the most optimistic scenario in this chart.

So how will you trade this stock? Well, as a trader, I like to be in a position where I can make a profit if the price goes up, if it stays stable, and if it goes down, we can still make some profit.

Therefore, I view this stock as a sell-call option strategy. I am optimistic, but I don't need the price to go up , all I need is for it not to go down too much. So, if we look at the expiry date of November 20, 2026, I am thinking of buying a put option at a strike price of 340 and then selling a put option at a strike price of 350.

What I like about the put option at 350, as shown in the chart, is that it is below the 10 and 20-day moving averages, specifically at the point where I noticed a lower base forming.

Therefore, I don't think the price will fall below that. You will receive a net profit of $2. You pay $4 as a discount and $6 as a credit when you sell the put option at 350. That is, you get a net profit of $2 against a risk margin of $10.

This means a potential return of 20%. These numbers are better than the previous two numbers I explained. You also have a safety margin. Therefore , the stock price may fall by approximately 90 points , or even 100 points, before this margin is threatened.

Well, you have 43 days, and there are no earnings reports or any important news, and this could increase market volatility and lead to a decline. Therefore, I believe it is a simple and effective way to take advantage of the bullish chart, without the need for the price to rise.

But if it goes up , that's excellent. You will remain in a position to make a profit regardless of the market direction. Well, our break-even point in this deal is 348. Even with a drop of approximately 3%, we have a safety margin in this deal.