Hello everyone, Adam Hewison here coming to you from the digital studios of MarketClub. Yesterday, the Barrick Gold Corporation (NYSE:ABX) had a major trend change to the upside signaled by a new green monthly Trade Triangle. It's the first buy signal ABX has had since it began its move on January 7, 2016. At that time the signal was it $8.33 and the market moved as high as $23 before pulling back.
Today I have put together five different charts that show why I believe Barrick Gold is headed significantly higher.
About This Stock
Barrick Gold Corporation (NYSE:ABX) engages in the exploration and development of gold and copper properties in the United States, Canada, Australia, Argentina, Chile, Peru, the Dominican Republic, Papua New Guinea, Tanzania, Zambia, and Saudi Arabia. It primarily explores for gold, copper, and nickel deposits. The company's main properties include Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, and Veladero. As of the end of 2015, ABX had proven and probable gold reserves of 91.9 million ounces; and 11.7 proven and probable copper reserves of billion pounds. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.
In chart number one can see that Barrick Gold broke over a 52-month long-term negative force line (1) and moved as high as $23 a share (2) before pulling back 50% (3).
In this post, I would like to share with you the comparative dynamics of gold and top gold stocks starting from the date when the recent local bottom of gold was set at $1241 on the 7th of October, 2016 to see how top gold stocks reacted to the recent gold reversal.
Chart 1. Gold And Top Gold Stocks: Not All “Birds” Flew To The North
If you haven't been paying attention to the gold (NYMEX:GC.Z16.E) market, you may have missed one of the most interesting moves of the year. As all the major indices have been trending lower gold has been doing just the reverse.
Here are the three positive indicators I see.
1. The weekly Trade Triangle is now green. It triggered on 11/01 at $1281.10
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Precious metals expert Michael Ballanger reviews a number of the key elements that have characterized 2016's advance in gold, silver and the associated mining, development and exploration stocks.
With the summer of 2016 passing by at an alarming pace, I think it is important to take a few moments away from the enchanting beauty of Georgian Bay and review a number of the key elements that have characterized 2016's breathtaking advance in gold, silver and the associated mining, development and exploration stocks. While gold bullion is ahead 26.6% year-to-date, the gold mining stocks have demonstrated their incredible contained leverage and why, when the market operates properly, they are vastly more rewarding than the physical metals themselves. However, the 2016 advance has had many analysts questioning the integrity of this latest move as the HUI (NYSE Arca Gold BUGS Index) and the XAU (Philadelphia Gold and Silver Index) have defied gravity, the laws of physics, the Law of Diminishing Returns, and just about every other law that historically pertains to the behavior of stocks. Continue reading "Putting Gold Miners Into Proper Perspective"→