by Sam Collins 06/27/08
Barrick Gold Corp. (ABX) -- This gold-mining company with operations in Canada, the United States, Dominican Republic, Australia, Papua, New Guinea, Peru, Chile, Argentina, South Africa and Tanzania has been a steady performer in a volatile market.
The Trade of the Day first recommended ABX in 2006 when it was under $30 a share. Since then, it has moved in pace with the price of gold bullion. In February and March, it formed a triple-top at $54 but then fell to almost $37.
On May 21, with ABX at $42.21, the Trade of the Day said, "Now, however with the price of gold in recovery ABX may break through the resistance at the 50- and 200-day moving averages and make a quick run to $48 to $50. Longer term, it will track gold and if the metals break to new highs, so should ABX."
Since then, ABX has tracked gold while forming a base at around $38 with resistance at $44. Our original target of $48 to $50 is still valid and a break to new highs is likely.
Get Sam Collins' Daily Trader's Alert e-mailed straight to your inbox each morning before the opening bell absolutely FREE!
In addition to getting instant access to his Trade of the Day, you'll also receive, in the same e-mail, his Daily Market Outlook so you can start your day off right by positioning yourself for profits!
Click here today to sign up today for Sam's FREE Daily Trader's Alert!
Sam Collins can be reached directly at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.
Looking at Dow Theory can reveal what's going on beyond our usual internal indicators, sentiment numbers, etc.
CHK's recent new low does not alter its outlook; use it to buy shares at a discount.
The time-tested Moving Average Convergence/Divergence generated bearish indicators for the DJI, the SPX and the NYA.
Profitable solar energy stocks have often gone unnoticed and then exploded. ESLR could follow suit.
Rumblings of an LEH takeover are sending waves through the market, though fewer traders are around to notice.
