Barrick Gold Corp. (TSX:ABX) hit our radar today as the stock continues to benefit from the rise of gold and other precious metals over the last few months. With this resurgence in the price of ABX, shares have risen by 237% since their September 2015 lows. Even though the stock has moved up considerably, it is still significantly below its 2011 highs.
Looking at the technical chart of ABX specifically, the stock looks to have recently broken out of a resistance level at $25.50. With this breakout, we don’t see much more resistance until about $30 - $32 per share. As for support, we would watch the $25 and $21 levels as key levels on any share price weakness.
Our trade strategy would be to enter the stock on strength. Upon a successful entry, we would place a price target at $30.90 and a stop loss at $24.40. Based on today’s trading levels, our upside potential looks to be 16.5% while our downside risk is limited to 8%.
The stock price direction for the day for ABX:CA is UP. This stock is currently not trending in any direction or the stock may be fluctuating over the last 5 to 7 days, but after all the fluctuations, finds itself in roughly the same price point as it did when BullishInvestor.com started analyzing it 7 days earlier. As a result, the trend for this stock is too weak to properly analyze at this time. That being said, short spurts of share price increases or decreases can still occur even though a trend has not been properly analyzed which is why watching the BullishInvestor.com daily ratings may be able to pinpoint quick entry and exit levels in this stock. Based on BullishInvestor.com’s proprietary algorithms, ABX:CA is currently signalling NEUTRAL.
The most recent Candle Stick pattern for ABX:CA is the Doji.
There are two possible reasons for the Hold rating currently given to ABX:CA. The first reason is that there may be indecision among the technical indicators or most of them may be neutral for ABX:CA. If the stock chart looks flat lined or is in the midst of a trend direction change, most likely this is why ABX:CA is showing Neutral. If, however the stock is currently in a visible up or down trend, the reason for the Hold may be because the BULLISH or BEARISH rating has already passed.
The last SELL was registered on Oct 24, 2024 when ABX:CA was trading at $28.15. Armed with this knowledge, there may still be some more strength left in this current trend or it may be near a tipping point, the market has not given a clear indication yet.
As such, it may be a wise decision to hold your stock or continue to wait on the sidelines in ABX:CA until BullishInvestor.com changes the rating for ABX:CA.