Leading gold mining stock, Agnico Eagle Mines Ltd (AEM), is coming under sharp selling pressure today. This leading gold mining stock is declining with most of the other leading gold stocks in the industry group, so this selloff is not specific to Agnico Eagle Mines Ltd (AEM) stock. Traders should note that AEM is breaking below its important 200-day moving average. This decline puts the stock in a weak technical position on the charts. Often, it will also lead to further downside before the stock will find some solid institutional sponsorship.
Traders and investors should now watch the $58.00 level for major chart support. This level is where the stock was defended back in early June 2020 before breaking out to new all time highs. Usually, key support levels that led to a major breakout will be defended when initially tested. I will be looking at a long trade in Agnico Eagle Mines Ltd (AEM) stock at this important support area.
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