Barrick Gold Corporation (USA) (NYSE:ABX) – A Big Bull Run in Making

Posted on Apr 10 2014 - 9:39am by Fiona

Boston, MA 04/10/2014 (wallstreetpr) – Barrick Gold Corporation (USA) (NYSE:ABX) (Closed at $18.93, Up 0.75%) opened negative and in the last half of the trading session strong volume buying took the stock to its intraday highs and finally closing it on positive note. The news of ISS (Institutional Shareholder Services Inc.) making a statement to shareholders should vote in favour of latest compensation plan and director nomination forms the reason of heavy volumes into the stock of Barrick Gold Corporation (USA) (NYSE:ABX). The company is restructuring its business to overcome its problems and this may lead to the prosperity of the stock price.

The price chart of Barrick Gold Corporation (USA) (NYSE:ABX) has exhibited a inverted head and shoulders pattern on daily charts. The pattern looks text book pattern which had been developing from quiet a long time and with declining volumes suggesting strong accumulation. Prices had broken out of the pattern in the month of February 2014. There is a gap in the prices where the resistance is at $22.17. Once the stock closes above this level it will gain momentum and rise with strong force. Further the stock of Barrick Gold Corporation (USA) (NYSE:ABX) is trading with the positive crossover of long term moving averages of 50 and 200 DMA which adds to the positive view.

The stock of Barrick Gold Corporation (USA) (NYSE:ABX) is presently consolidating near the long term averages of 50 and 200 DMA. There are strong supports near the levels of $15 which can be maintained as stop losses by the investors. The buy positions can be entered in the stock near the current valuations as it seems to be attractive with P/E ratio of 9.87 and EPS of 1.92. Those who are holding the positions can wait for further three to four months which can fetch them good returns on their investments.

About the Author

Fiona is a finance graduate and an expert in analyzing market trends.

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