"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 2 days Major League Baseball Turns To Blockchain Tech
  • 3 days Institutional Investors Hold A Lot More Crypto Than You Think
  • 3 days U.S. Treasury Yields Could Be About To Break Out
  • 3 days Tesla Stock Stumbles On Model 3 Cancellations
  • 3 days Yuan Rebounds At The Expense Of The U.S. Dollar
  • 3 days Iraq Unplugged: No Internet, No Protests, No Money
  • 3 days The Tariff War Could Spark A Debt Crisis In China
  • 4 days Gold Selloff Continues As Dollar Climbs Higher
  • 4 days Gold Investors In A Frenzy Over Sunken Russian Warship
  • 4 days The New King Of Electric Cars
  • 4 days BlackRock Goes Bitcoin
  • 4 days U.S. Banks See Best Earnings Report In Years
  • 4 days The Case For Gold Is Not About Price
  • 4 days Stock Market Sentiment Turns Bullish
  • 5 days What Is Bitcoin Really Supposed To Be?
  • 5 days The Surprising Media Giant Taking On Netflix
  • 5 days Cybersecurity Stocks Are Red-Hot As Election Looms
  • 5 days Americans Grow Weary Of U.S. Trade Policy
  • 5 days What Putin Really Wants From Trump
  • 5 days Europe’s EV Sales Growth Is Slowing
Chinese IPO Fervor Slows As Xiaomi Disappoints

Chinese IPO Fervor Slows As Xiaomi Disappoints

The Chinese IPO space was…

3 Reasons Small-Cap Stocks Are Booming

3 Reasons Small-Cap Stocks Are Booming

As major market indexes waiver,…

The Surprising Media Giant Taking On Netflix

The Surprising Media Giant Taking On Netflix

Professional wrestling is not often…

Avi Gilburt

Avi Gilburt

ElliottWaveTrader.net

Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net (www.elliottwavetrader.net), a live Trading Room featuring his intraday market analysis (including…

Contact Author

Is Barrick Gold Close To Finding A Bottom?

Mine

We have seen downgrade after downgrade on Barrick Gold (ABX) for years. Many keep looking lower and lower, with some even considering that this stalwart in the miners’ complex may even go out of business due to its debt load.

However, back in 2015, it was one of the first miners to bottom. In fact, when we saw the potential bottoming of ABX in 2015, we actually opened our EWT Miners Portfolio in September of 2015, and the ABX was one of our first buys.

But after it hit its high over a year and a half ago, it has been within a corrective pullback from the August 2016 high. And, since that time, it has seen sentiment about the company drop consistently.

In the last quarter of 2017, when the GDX broke its upper support in September, I noted that the ABX has a set up to take it down to the 11-12 region, and we were in the 16-17 region at the time. And, if you note the “buy zone” on the chart below, it was placed there in September of 2017.

Currently, ABX has struck our downside target but has not confirmed that the downside is yet complete. We are now just below the resistance we were looking for it to hit its head upon in the 12.50 region. As long as ABX remains below this resistance, it has a downside set up to drop towards the 10.80-11 region to complete this long-term pullback in which it has been mired since mid-2016.

However, if we see strength through the 12.50 region, and it can continue to rally up towards the 13.50-14 region in the next few weeks, then it provides us with a strong indication that the lows for ABX have been seen, and we are likely setting up the next major bullish move for ABX for the rest of 2018. Related: What Killed Toys ‘R’ Us?

But, under either circumstance, I expect the ABX to strike a significant bottom in the near term, and see it resume its bull market run into the end of the year.

Lastly, since ABX has been a major drag on the GDX of late, I believe that the GDX will finally begin its bullish pattern once the ABX finds a bottom and is no longer a drag on the GDX.

(Cllick to enlarge)

By Avi Gilburt, ElliottWaveTrader.net

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment