Potential Long Opportunity in a Gold Stock
03/20/2009 9:59 am EST
Barrick Gold Corp. (ABX) - This acquirer, explorer, and developer of gold properties and copper, silver, and zinc has pulled back from a recent high at over $40, but fell through support at the conjunction of the 50- and 200-day moving averages.
Now, however, with inflation as a real possibility, ABX has responded with a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), and the stochastic.
But to get a full new bull market move underway, it must break above the 50- and 200-day moving averages at $34. Buying now could yield a target of $50, but stop-loss orders should be placed at $25.
By Sam Collins of OptionsZone.com