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Golden Opportunity in ABX

by Sam Collins 10/30/09

Barrick Gold Corp. (ABX) -- This acquirer, explorer, and developer of gold properties and copper, silver and zinc, has pulled back from a recent high at more than $40 and is stabilizing between the 50- and 200-day moving averages.

ABX Chart

Chart Legend

We have been following ABX all year with the latest comment on Oct. 2. On June 16, I said," Yesterday, Barrick fell to just above the 50-day moving average, and could even pull back to the 200-day moving average and major support line at about $31.50. But ABX is now in an uptrend, so purchases now and on any pullback could provide substantial reward. The trading target for ABX is $45."

Now, with a fully developed right triangle and a new buy signal from Moving Average Convergence/Divergence (MACD), it looks like buyers at this level stand a good chance of seeing ABX hit the $45 goal.

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