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.


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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.


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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.

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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.

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