Wednesday, September 26, 2012

Buy This Gold Superstar

Barrick Gold Corporation (NYSE: ABX) — This acquirer, explorer and developer of gold, copper, silver and zinc, pulled back from a high of $48 in early December 2009, and bottomed at just under the 200-day moving average at $35 in February.

On Oct. 4, with the stock at $47, the Chart o the Day said, “[The] ascending support is putting pressure on the major bearish resistance line (triple-top) at $47. A new buy signal was generated by the stochastic in late July, and the top was breached, but ABX then pulled back to support at its 200-day moving average. If ABX conclusively breaks the compound top, look for a major move higher with a long-term target of $55.”�

The breakout occurred, but shortly afterward the stock pulled back to its 50-day moving average, giving buyers another shot at this gold superstar.

The target is still $55. S&P rates ABX a “three-star buy” with a 12-month target of $57.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.

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