Barrick Gold (NYSE:GOLD) Data Suggests a Buy Signal


Barrick Gold Corp (NYSE:GOLD) marked a 3.5 yr high at 22.44 on 24 February and paused, the data now suggests the stock is flashing a buy signal as it nears a historically Bullish trendline.

Barrick Gold stock has come within 1 standard deviation of its 40-Day MA following an extended period above the trendline, defined for this study as having traded North of the MA 60% of the time in the past 2 months and in 8 of the last 10 trading days. GOLD has seen 4 similar pullbacks within the past 3 years, which has resulted in an average 21-Day gainer of 8.31%.

Barrick Gold Stock Chart

GOLD finished at 19.54, -.30% on the day. The stock is within easy from the February highs again.

GOLD has held to its YTD breakeven point amid this month’s volatility, and remain up 48% in the last 12 months.

Options traders are picking up Long calls in here, as per the stock’s 10-Day call/put volume ratio of 5.80 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which puts in in the elevated 67th percentile of its annual range. 

The March 24.50 call has seen the largest change in open interest during this time frame. Buyers of this call are expecting big gains from this mining stock in the next 2 wks, when the options expire.

Analysts’ growing optimism on the earnings prospects of this gold and copper mining company is driving estimates higher, which should get reflected in its stock price. 

Stay tuned…