Barrick Gold Corporation (NYSE: ABX) — This acquirer, explorer and developer of gold, copper, silver and zinc, pulled back from a high of $48 in early December 2009, and bottomed at just under the 200-day moving average at $35 in February.
Since then, it has found support at its ascending 200-day moving average. That ascending support is putting pressure on the major bearish resistance line (triple-top) at $47.
A new buy signal was generated by the stochastic late in July, and the top was breached, but then ABX pulled back to support at its 20-day moving average. Now the stochastic is flattening prior to a possible new buy signal.
If ABX conclusively breaks the triple-top, look for a major move higher by ABX with a long-term target of $55.
S&P rates the stock a “three-star buy” with a 12-month target of $57.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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