UXG Is One to Watch

Posted on October 15, 2007 , Filed Under Stocks

With gold prices hovering above $750, US Gold Corporation [[UXG]] is definitely one gold exploration stock you want to keep your eyes on.

Check out my updated chart for UXG.

uxg chart

UXG still has a number of positive fundamental and technical points in its favor.

US Gold controls one of the largest land packages in Nevada next to major gold producers.
A high percentage of insider shares is owned by Rob McEwen, the former CEO and Chairman of Goldcorp [[GG]].
The chart points out that we are in oversold territory according to RSI and approaching oversold territory according to MFI.
The price is going down without a large short position.

I would wait till I see a bullish centerline crossover before adding more shares or opening a new position in UXG. When we see a crossover I am guessing UXG will very quickly rise to $6-$6.50 levels. It makes no sense to try and catch a falling knife when there are plenty of quality gold producers that I consider undervalued.

*Disclaimer: The author owns a position in UXG.