Barrick Gold Corp. (ABX) — This stock has pulled back from a recent high above $40 and is stabilizing at the 50-day moving average.
We have been following ABX all year. On April 16, 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 [April 15], but in order for ABX to pick up momentum, it must close above the 50- and 200-day moving averages now at around $34. ”
On June 16, I said, “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. ”
Now, with a fully developed right triangle and a new buy signal from Moving Average Convergence/Divergence (MACD), it looks like buyers at this level will be rewarded with a trade to $45.
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