Barrick Gold Corp. (ABX) — This acquirer, explorer and developer of gold properties and copper, silver and zinc has pulled back from a recent high at over $40. But then it fell through support at the conjunction of the 50- and 200-day moving averages.
On April 16, at $29, I wrote, “Barrick is trading in a huge triangle with support at $29 and the intermediate trend line. The stochastic issued a buy signal yesterday, but, in order for ABX to pick up momentum, it must close above the 50- and 200-day moving averages now at around $34.”
Barrick met our initial goal of breaking above the 50- and 200-day moving averages, and ran to almost $39 before coming under pressure from profit-taking.
Yesterday, Barrick fell to just above the 50-day moving average, and could even pull back to the 200-day moving average and major support line at about $31.50. But ABX is now in an uptrend, so purchases now and on any pullback could provide substantial reward.
The trading target for ABX is $45.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
