In his first "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Mark Bristow, CEO of Barrick Gold (GOLD) for an update on the company.
Bristow said after a brief shutdown for Covid-19, Barrick's mines are back in full operation.
Bristow said the market is strong for both gold and copper, and with gold prices on the rise, it's always "more enjoyable" to be in the mining business. Bristow was very bullish on the assets Barrick acquired from Newmont Mining (NEM) , calling them "fantastic" for the combined company.
Finally, Bristow noted that the gold mining business needs to grow up and become more modern. He said it's imperative that their industry aligns their values with the expectations of future generations on important issues like the environment and social responsibility.
Let's check out the charts of GOLD to see if they are aligned on the upside.
In this daily bar chart of GOLD, below, we can see that prices have more than doubled from their March nadir. GOLD is trading above its rising 50-day moving average line and its bullish 200-day moving average line. The trading volume has been active since February as bullion prices have risen - this tells us that more traders and investors are involved with this name.
The daily On-Balance-Volume (OBV) line shows a rise the past 12 months and a stronger rise from March telling us that buyers of GOLD are more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but the two averages that make up this indicator have narrowed. Fresh price strength in the days ahead should improve the signal.
In this weekly bar chart of GOLD, below, we went back five years to show the large base pattern from which prices have emerged on the upside. Big bases can support big rallies. Prices are above the rising 40-week moving average line.
The weekly OBV line has been positive the past five years even when prices declined. The MACD oscillator is bullish too.
In this daily Point and Figure chart of GOLD, below, we used close only price data to construct the X's and O's. Here the chart is projecting a potential upside price target in the $52 area.
Bottom line strategy: GOLD (and many other miners) has broken out of a major base pattern. Prices are on the rise with higher price targets. Traders and investors could go long GOLD and/or add to existing longs at current levels. Risk a close below $23 for now. The $52 area is our price target for now.
