• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Looking Longer-Term, Barrick Gold Could Double in Price From Here

Traders and investors could go long GOLD and/or add to existing longs at current levels.
By BRUCE KAMICH
Jul 17, 2020 | 07:47 AM EDT
Stocks quotes in this article: GOLD, NEM

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.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Gold | Investing | Stocks | Technical Analysis | Trading | Metals & Mining | Mad Money | Executive Interview

More from Investing

There's an Awful Lot of Giddiness in Technology Stocks

Helene Meisler
Jun 5, 2023 6:00 AM EDT

The message of the market for the last two years has been don't fall in love with the bull case or the bear case because just as you do, the market manages to find a reason to go the other way.

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Bob Lang
Jun 4, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

The Word Is, 'Lexicon' Is Worth a Trade

Bret Jensen
Jun 4, 2023 7:00 AM EDT

Here's an options play on this small pharma name that just scored an FDA win.

As the Market Shifts, So Should Your Strategy

James "Rev Shark" DePorre
Jun 3, 2023 11:50 AM EDT

Let's look a how to adjust trading techniques to fit the changes in the market.

Market's Frothy With a Side of FOMO

James "Rev Shark" DePorre
Jun 2, 2023 4:41 PM EDT

The small caps and the Dow finally host the party on Wall Street. But will this broadening action continue?

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login