For his second "Executive Decision" segment of Friday's Mad Money program, Jim Cramer spoke with Dr. Mark Bristow, president and CEO of gold miner Barrick Gold (GOLD) . We reviewed the charts of Barrick Gold on Thursday using the Canadian symbol (ABX), but let's use the NYSE symbol of GOLD today.
Bristow commented on a host of topics. He explained that while Barrick owns five of the top 10 gold mines in the world, they now aim to do the same with copper, which continues to soar in price. He also explained that their dividend policy is pegged to the price of gold, so investors will always know what their dividend will be.
Barrick continues their commitment to sustainable and responsible mining around the globe, Bristow said.
Let's look at some charts.
In this daily bar chart of GOLD, below, we can see a six-month base pattern that GOLD has emerged from. Earlier this month prices broke out over the 200-day moving average line and above the November highs. GOLD is trading above the rising 50-day moving average line and the 50-day line is getting close to crossing above the 200-day line for a bullish golden cross buy signal.
The price action in the past week or so looks like a classic bull flag pattern - a short-term continuation pattern. The trading volume has increased the past two months as prices have gained steam and that is what old-time chart readers like to see - increased participation and recognition of the uptrend.
The daily On-Balance-Volume (OBV) line has been very steady since late September. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.
In this weekly Japanese candlestick chart of GOLD, below, we see a bullish setup and no warning signs of a top reversal. Prices are in an uptrend above the bottoming 40-week moving average line.
The weekly OBV line has turned upwards and broke a long decline from 2020. The MACD oscillator is about to cross the zero line for a new outright buy signal.
In this daily Point and Figure chart of GOLD, below, we can see an upside price target in the $32 area.
In this weekly Point and Figure chart of GOLD, below, we used a five box reversal filter. Here the chart suggests we could see the $45 area in the months (?) ahead.
Bottom line strategy: As we said on Thursday - Barrick 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 could go long GOLD on available weakness. Risk to $21. Add to longs above $24. Price targets are $32 and then $45.
