Novagold Resources (NG) is a gold producer. It has long been on our list to buy. Now the rumors are surfacing that the company is for sale.
Starting a 10% tranche right here at $7.12.
Buy zone on NG is $6.25 to $7.30, preferably closer to $7.00. Stop zone is $5. to $5.73 and target zone is $9.60 to $11.20.
There is high risk to this trade, therefore we do not recommend buying more than a 10% tranche here. Consider adding a second 10% tranche around $6.80.