The Barrick Breakout?

A few posts ago I examined the failure of Barrick to make a clean break above $51 - see Gold and the Acid Test post November 8, 2010. At the close Monday Barrick on the TSX rose 4.74% on 3.7 million shares to close at $51.48 – a new 52-week high – but not quite an all time high. On the NYSE Barrick rose 4% on 12 million shares to close at $51.21 a new 52-week high but not quite an all-time high.

Today the price of gold has backed away from the November 8 peak but Barrick at 51$ (US) is threatening to pop above the November 8 peak and on the TSX Barrick at 52$ (CDN) is close to an all-time high close. On a point & figure we need a close above $53 to confirm the all time high. This would trigger a bullish stampede into the precious metals complex. Barrick is the key here because all of the big sideline cash will surely go there. Note the inter-day action on Barrick thanks to Yahoo! Business. Very bullish.