Barrick Gold Corporation (NYSE: ABX)–This acquirer, explorer and developer of gold, copper, silver and zinc, has pulled back from a high of $48 in early December, and bottomed at just under the 200-day moving average at $37.
On April 6, at $39.48, I said, “The stochastic issued a buy signal last week, which alerts us to the possible break of the strong resistance line at $40. Should ABX break the line on high volume, look for a quick trade to $45. Longer-term buyers may want to add Barrick to their portfolio as an inflation hedge.”
ABX not only broke the resistance but exceeded our target of $45. Since then, it has found support at its ascending 50-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 yesterday. If ABX breaks the triple-top, look for a major move higher by ABX with a long-term target of $55.
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