Gold prices have been soaring lately and one Real Money subscriber asked what we thought of the charts of Barrick Gold Corp. (ABX) which is listed on the Toronto Exchange but also trades on the NYSE under the symbol (GOLD) . There is a price difference but the trends are the same. Let's check.
In this daily bar chart of ABX, below, we can see that prices broke out of a base pattern when they rallied above the November high. Prices are trading above the rising 50-day moving average line as well as the rising 200-day line. The way prices are moving we should soon see the 50-day line cross above the 200-day line for a bullish golden cross signal.
The On-Balance-Volume (OBV) line shows its own base pattern over the past six months telling us that traders are being more aggressive buyers of this precious metal company. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of ABX, below, we can see a bullish setup. Prices are up strongly above the 40-week moving average line. The weekly OBV line and the MACD oscillator tell us a strong rally is underway.
In this daily Point and Figure chart of ABX, below, we can see an upside price target in the $44 area.
Bottom line strategy: ABX has a strong looking chart and while we might have a pullback or correction in the short-run, we are likely to head still higher in the months ahead. Traders south of the border could go long GOLD on available weakness.
