While my crystal ball is in the shop, and I am unable to tell you exactly what will happen in the co...
Barrick: Gold Stock Bargain?
09/18/2017 2:59 am EST
With the major stock market indexes hitting record highs, demand for "safe havens" like gold have dipped this past week, explains technical expert Andrea Kramer, contributing editor to Schaeffer's Research.
However, one gold stock is flashing a "buy" signal that hasn't been wrong the last four times: Barrick Gold (ABX). Below, we'll discuss why ABX stock looks like a bargain right now. ABX stock has been in an upward channel since early July. The stock has pulled back since its most recent high in the $18.35 area, and is now within one standard deviation of its 40-day moving average, after a lengthy time above this trendline.
According to Schaeffer's Senior Quantitative Analyst Rocky White, the last four times ABX stock retreated to this trendline, the shares were higher one month out 100% of the time, averaging a healthy gain of 9.37%! Barrick Gold stock was last seen 0.8% higher on the day, at $17.27. Another 9.37% rally from current levels would put ABX around $18.88 -- a level that provided a foothold for ABX before its April bear gap.
Although Barrick Gold shares have outperformed the broader S&P 500 Index over the past three months, there's still plenty of room aboard the bullish bandwagon.
In fact, just four of 14 analysts consider the gold stock worthy of a "buy" or better rating. A round of upgrades could lure more buyers to the table, sending ABX shares even higher.
Related Articles on COMMODITIES
Markets are now in their Santa phase. Expect rallies with brief interruptions for consolidation or p...
The pound has acted well against the dollar in the midst of Brexit. Friday was a reversal day. I am ...
Until the GDX is able to break below 21, the bulls have an opportunity to prove themselves as we hea...