Is Equinox Gold (EQX) Headed for a Breakout?

Equinox Gold Corp (EQX) is a Canadian mining company with a portfolio of production, near-production, and exploration-stage projects. The company’s principal assets are the Aurizona gold project in Brazil and Castle Mountain. It also has an interest in the Koricancha gold milling operation in Peru…

In the most recent quarter, Equinox Gold Corp (EQX) produced about 125,000 ounces of gold. It also had a good safety record for the quarter. While EQX has dealt with setbacks due to COVID, the company bounced back and the Delta variant had minimal impact on the operations. The firm continues to be on track to build one mine per year.

EQX has a current ratio of 3.1, which indicates it has more than enough liquidity to handle short-term obligations. Sales growth has averaged 295.5% per year over the past three years. The stock also looks undervalued with a trailing P/E of 4.35 and a forward P/E of 8.39.

The stock has shown long-term bearish momentum, but performance has been mixed since August. This is evident in the chart below.

Take a look at the 6-month chart of EQX below with my added notations…

See chart and continue reading at STOCKNEWS.com