Barrick Gold and Positive Divergence

I am sure we all recall the Gartman Letter published late last month when Mr. Gartman said he was out of gold, based on a belief that the rally in the yellow metal over the past decade is ended.. He said China has been buying gold aggressively over the past several weeks, which should have sent the price surging. Instead gold has fallen almost 10% since the beginning of December. “One of the oldest rules of trading is simply this: A market that cannot or does not respond to bullish news is a bearish market not a bullish one,” In response Peter Grandich called Gartman one of the ‘three stooges of gold forecasting’’

OK let them go at it but in the meantime why not look for a trading opportunity and I think I see a Barrick Gold trade here. Note our Barrick vs. Gold chart. The support line at (B) was broken in the recent GLD correction, but Barrick posted a higher low – bullish divergence. Note now the pivot level at (A) with the GLD still below and yet Barrick is trading above the relative pivot at (A) this is a display or strong relative performance. I look for Barrick to run up to the old highs of last September