Barrick Gold is the world's top gold producer. They are simply the best:
#1 gold reserves
#1 gold producer - and finally unhedged
tremendous project pipeline
provides global diversification in geopolitically stable regions
strong balance sheet
etc, etc, etc
Gold is currently in a correction, and this presents an opportunity to "invest" in Barrick Gold. "Invest" is intentionally quoted, because don't consider this a trade. This is both a value and growth investment opportunity. The charts are indicating the downtrend to continue, but what's interesting is that the Gold miners earnings are coming out this week. Barrick reports on Thursday. Early in the week may be a buy opportunity.
Indicators on daily charts confirm internal weakness and downward price trend
MACD(50,200,1) slope is negative
Note the bearish divergence
momentum indicators are confirming downtrend
volume indicators are also bearish
NOTE: The ADX line is moving up and has crossed over the lower line
this usually indicates a strong trend move is about to start
It appears that the long awaited Gold correction has begun which coincides with a wave 5 completion. The retracement target is into the wave 4 formation, which aligns quite nicely with the Fibonacci retracement levels - see the weekly chart above.
Recommended Strategy: wait for a bullish divergence on the weekly chart before going long.
The long term secular bull market is still intact. However, Gold may be headed for at least the mid-channel and possibly the bottom of the channel ...In other words, Gold may be entering a corrective phase soon.
The $USD has surged on safe haven buying, but it did take a breather lasty week
The more "risky" $CDW has been crushed in the last several weeks.
Because of high currency volatility, companies dually listed on US and CAD exchanges tell a different story when charted, which makes technical analysis more difficult.
One thing to note is that overall the Gold miners did suffer severe technical damage last week. The $XAU and $HUI have reversed and both are oversold. ABX has not reversed it's trend yet, but it is on the edge - the same goes for Gold.
Expect an oversold bounce this week, and be on alert.