Sunday 10 July 2016

Barrick Gold Corporation (NYSE : ABX) - Case Study

Gold price rebounds on early January 2016 from its bottom.


Similarly, ABX also rebounds around the same period.
Prior to that, ABX had been moving in the sideway market for certain periods, as shown in the chart below.


In side way market, the price action only able to hit 1-month High or Low several times. Despite breaking the 1-month High, the stock did not rally much.


The first breakthrough came on 7 January 2016 (point #1) with the following indications on S-Trader.

1) Price broke above the S-Trader Pivot Resistance
2) Price action hits 3-month High.
3) S-Trader Volumetric recorded relatively High volume action.
4) S-Trader Smart Money Index showed the Big Boys (Smart Money) supporting the price breakout.



However, the price action did not move any much further.

In fact, the price pullback but supported by S-Trader Pivot Support. At the same time, smart money still in the market supporting it (as shown by S-Trader Smart Money Index - green bar).

On 25 January 2016 (point #2), once again the price made another breakout with the similar indications on S-Trader but this time it hits 6-month High.



   
Chart Source :
1) goldprice.org
2) Metastock

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