In his first Executive Decision segment of "Mad Money" Monday, host Jim Cramer spoke with Mark Bristow, president and CEO of gold miner Barrick Gold (GOLD) .
Bristow said the business at Barrick "couldn't be better" as the company continues investing in its future while also delivering stable cash returns for its shareholders. Mining is, after all, a consumptive industry, Bristow noted. For every ounce of gold you take out of the ground, you must replace it with additional reserves. That's why Barrick has a long history of providing sustainable, profitable growth.
Even in Nevada, Barrick has discovered new opportunities Bristow described as "huge." The rewards in Nevada will be fantastic, he said.
Let's check out the charts of GOLD.
In this daily bar chart of GOLD, below, we see prices made a low in late February and now we see prices retesting that low in the $19 area. Prices are trading below the declining 50-day and declining 200-day moving averages, but these are lagging indicators. Trading volume looks like it has improved since early August and the daily On-Balance-Volume (OBV) line has been holding the same late-February low since August. This tells us that buyers and sellers appear to be in a balance at the prior low. The Moving Average Convergence Divergence (MACD) oscillator has been making higher lows from March to June to August and last month gave a cover shorts buy signal.
In this weekly Japanese candlestick chart of GOLD, below, we can see some subtle improvement in the chart. Small real bodies in recent weeks could be setting things up for a reversal. Prices are in a downtrend as they trade below the declining 40-week moving average line. Trading volume has diminished in recent months and the weekly OBV line is holding its February low. The MACD oscillator is below the zero line and pointed down but also close to a crossover to the upside.
In this daily Point and Figure chart of GOLD, below, we can see a potential downside price target but also a potential double bottom pattern. A trade at $18.68 is needed to refresh the downtrend. Maybe it doesn't happen.
In this weekly close-only Point and Figure chart of GOLD, below, we can see a potential bearish target of $9.00, but we also can see a large base pattern that has been unfolding for years -- since 2013, in my opinion. Not having a trade at $18.50 is important.
Bottom line strategy: Keep an eye on the U.S. Dollar (DXY) for clues to see if GOLD makes a double bottom pattern.