B2Gold Corp. (BTG) was upgraded by TheStreet.com's quantitative service Monday. I have been recommending a number of precious metal names since December, so let's see how this one looks on the charts.
In this daily bar chart of BTG, below, I can see that prices are trying hard to set up for further gains. Prices are trading above the 50-day moving average line and above the 200-day moving average line. The chart will be more positive when the slopes of these two averages are positive. The On-Balance-Volume (OBV) line needs to move above its January/February peak to tell us that buyers are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of BTG, below, I see a large bottom pattern playing out over the past eleven months. Prices are now above the rising 40-week moving average line. The weekly OBV line is in the process of breaking a longer-term downward trend. The MACD oscillator is above the zero line in bullish territory.
In this daily Point and Figure chart of BTG, below, I can see that prices have reached and exceeded a price target of $3.33.
In this weekly Point and Figure chart of BTG, below, I used a five box reversal filter. Here the software suggests a price target in the $6 area.
Bottom line strategy: The charts of BTG are looking stronger. A rally over the January highs will be a clear buy signal for traders and investors. Traders could go long on strength above $4.16.
