Agnico Eagle Mines: #PowerStocks Series Pick Of The Week (August 2025)

Last Sat was a highly anticipated date. Russia's President Putin met President Trump for talks on a potential peace deal regarding the Russia-Ukraine war. As it turns out, we are still miles away from any peace deal. Peace deals are tough to seal, given the profound differences between the 2 nations. And the market understands this. We could face a slightly different market complexion in the near term. I'm expecting a pullback to be coming, and this could benefit this week's #PowerStocks pick. But before I share my findings, let's review last week's #PowerStocks pick: Arista Networks (ANET).

Review Of Last Week's Pick Of The Week

Arista Networks (ANET) was last week's stock pick. It's a technology company that develops and provides cloud networking solutions, supporting the AI industry. Having risen over 20% for a week, a pullback finally emerged. I had planned for its share price to reach its support area of around $133.50 and bounce. After waiting for close to a week, this has come to pass on Fri. A look at the market conditions got me a little concerned. A pullback in the overall stock market could affect the share price of Arista Networks. What are my plans for this trade? Head over to my Telegram Channel to find out! Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Agnico Eagle Mines (AEM) Worth It?

 

Source: agnicoeagle.com

Agnico Eagle Mines is the 2nd largest gold miner in the world, only behind Newmont. The company enjoys a humongous market capitalization of almost $67b. Many humongous companies suffer from this issue - lethargic share price movement. Not Agnico Eagle Mines! Its share price is capable of bursting upwards repeatedly, between 4.7% and 33.3%, 23 times in just the past 11 months! When compared to the performance of the stock market, Agnico Eagle Mines' shares shine like a diamond. While the S&P 500 had climbed 8.2% in the past 3 months, the shares of Agnico Eagle Mines shot up more than 25% in the same time period! A pullback is finally here, providing me with a fantastic opportunity to buy its shares and ride its next big upmove. What's my game plan? Where's a favorable price area to buy its shares at? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Agnico Eagle Mines (AEM)

What is the 1st thing I'd want to know from this analysis? I want to identify the trend of Agnico Eagle Mines' share price. Why? Knowing the trend of its shares allows me to determine whether I'd look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability. Given the mighty uptrend in Agnico Eagle Mines' share price, I'd like to identify a buying opportunity. Great! But that's not all. I'll compare the performance of the S&P 500 (maroon) against Agnico Eagle Mines (blue). A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder. While the S&P 500 had climbed 8.2% in the past 3 months, the shares of Agnico Eagle Mines shot up more than 25% in the same time period! That's a mighty outperformance by Agnico Eagle Mines by over 3x! I want to buy its shares for an explosive swing trade. But is this all to analyze?

How Explosive Is Agnico Eagle Mines (AEM)?

No, there's still more to analyze to boost my chances of success. Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast. Have the shares of Agnico Eagle Mines been able to explode upwards consistently? Marking out the explosive upmoves for the past 11 months has left me stunned. There are 23 explosive upmoves, and each of them measures between 4.7% and 33.3%! What's even more impressive? Agnico Eagle Mines is the world's 2nd largest gold miner, enjoying a humongous market capitalization of almost $67b! The share movement of such huge companies is usually more subdued, but not Agnico Eagle Mines. Additionally, I appreciate that Agnico Eagle Mines enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented! Here comes the golden question: Is it time to buy the shares of Agnico Eagle Mines for an explosive swing trade?

Key Price Levels

As with many things in life, timing is key. Trading is no exception. Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you'll doubt yourself even when a fantastic trading opportunity arises straight from under your nose! The shares of Agnico Eagle Mines have been pulling back over the last week. Where can I expect its shares to drop to and bounce from? You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that's what I've done in the chart above. Because its support area is around $130, I'm expecting a further drop in its share price. Once this happens, I'll be on the lookout for a bounce before buying its shares to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!