Barrick Gold Corp. (Friday’s close $28.37) traded below a falling trend-line (dashed line) and below its falling 40-week Moving Average (40wMA) for more than two years. It then settled in a bullish Inverse Head-and-Shoulder formation (solid lines). The rise above the neckline of this pattern (dotted line) signalled a breakout and the start of a new up-leg (A).
Subsequently, the stock pulled back and found support near its 40-week Moving Average (40wMA – B) and now appears ready to resume the up-trend (C).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below $22-23 would be negative.
Point & Figure measurements provide a target of $33. The large Inverse Head-and-Shoulders formation (solid lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com