Barrick Gold Corporation engages in the exploration and development of mineral properties. It primarily explores for gold and copper deposits.
Take a look at the 1-year chart of Barrick (NYSE: ABX) below with my added notations:
Over the past two months, ABX has formed a trend line of support (blue), which has been tested multiple times. A pullback down to that trendline should give the stock yet another bounce. A break of that line would most likely lead to lower prices for ABX.
The Tale of the Tape: ABX has a trend line of support. A long position could be entered on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if ABX were to break below the trendline.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT