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in November 12, 2015 on a blog post, I noted 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.
.
At the time I noted a left shoulder (LS) – a head
(HD) and the incomplete right shoulder (RS) along with a tilted line is the
neck line which – when extended to the right marks the price (then $10.40)
Barrick needed to break
above on volume to complete the trend reversal. Technical analysts should not
react to a reversal pattern until complete – but Barrick seemed to be building
an inverse head & shoulder pattern since last July along with a big volume
increase.
Today on a weekly plot of Barrick we see the big volume
increase from the break above the inverse head & shoulder pattern along
with a break above the 40 week (or 200 day) simple moving average. On a P&F
chart I see some overhead at $21 - $22 so why not take some profits there and
pick up a few sector laggards? THO for now.
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4 comments:
Do you think this is a new cyclical bull market in gold?
Hello Shawn
Yes I do think a long term bull on gold - but be careful and do not over-weight and focus on miners with Canadian mines - do your homework
Bill Carrigan
Can we have a cyclical bull market in gold & the S&P 500 & Nasdaq? Do you think we're in a bear market for US equities? Is gold signalling we're nearing the end of the US equity bull market or is this a bear trap for gold?
Thanks,
Shawn
Shawn
My new bellwether post should explain
Bill Carrigan
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