Wednesday, February 20, 2013

All Eyes on Barrick Gold

We have looked at gold in terms of the long monthly cycle trough and the weekly or intermediate cycle trough occurring at the same time and observing the last time this occurred was in mid 2009. Then we addressed the “Death Cross” myth which in technical lingo is very scary event. In reality the golden and death cross trades involving stocks and indices bat 50/50 on trades because they occur half way into the move – up or down. The death cross on all of the major gold stock indices occurred in early January and at this point the 50-day MA is very far below the 200-day MA – and this is the level we usually get a turning point – but we do need another event to support this assumption.

Barrick Gold is the key – now at important support in U.S. and CDN $ charts – our TSX listed Barrick weekly chart displays the key support that must hold here. Note the positive divergence setup on the money flow numbers.


Anonymous said...

We closed today below 31 today. Are we, ABX share holders, doomed?

dh12 said...

volume on the weekly was exceeding the volume on that swing point low a sure sign it would break through that 31 level.