Golden Opportunity in This Mining Company
04/08/2010 12:01 am EST
Barrick Gold Corp. (ABX) - This acquirer, explorer, and developer of gold, copper, silver, and zinc, pulled back from a high of $48 in early December, and may have bottomed at just under the 200-day moving average, where it executed the first of two buy signals from our proprietary indicator, the Collins-Bollinger Reversal (CBR).
The stochastic issued a buy signal last week, which alerts us to the possible break of the strong resistance line at $40.
Should ABX break the line on volume, look for a quick trade to $45.
Longer-term buyers may want to add Barrick to their portfolio as an inflation hedge.
Standard and Poor's rates ABX a "four-star buy" with a 12-month target of $46.
By Sam Collins of OptionsZone.com