LIHIR Gold Limited ADR (LIHR) is up almost 100% since its lows in August, and has created a bull flag on the 2-year chart. The Wall Street Journal had an article about it today. In the article the WSJ said LIHR is a potential takeover target, because LIHR has such a strong position in the Australian Gold market. Australia is second largest gold producer in the world. The Australian dollar is a commodity-based currency that reflects the price of gold.

This upside push in LIHR mimics the upside push in the AUD, and is a way to play both gold and the AUD. With this bull flag and volume pattern in LIHR, LIHR could see $50 in the near future. That number could be even higher if LIHR were to receive a takeover bid.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.