Thursday, November 12, 2015

Who is buying Barrick Gold?

As of 3 pm today November 12’ 2015, I note the shares of Barrick Gold Corporation (ABX) on the TSX trading at $10.00 – up 0.32 (3.40%) on good volume of 3,725,421 shares. The December gold contact was down slightly on the day.

Barrick has been a poor sector relative performer for years – unlike the stronger names like Franco-Nevada Corporation (FNV) and Agnico Eagle Mines Limited (AEM). Our daily chart of ABX–TSX displays unusual strength

Technical analysts should not react to a reversal pattern until complete – but Barrick seems to be building an inverse head & shoulder pattern since last July along with a big volume increase.
I have noted the left shoulder (LS) – the head (HD) and the incomplete right shoulder (RS). That tilted line is the neck line which – when extended to the right marks the price (currently $10.40) Barrick needs to break above on volume to complete the trend reversal. The fundamental reasons for the buying are not known to me but then again the price always leads the story.

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