2014-02-13
With many gold mining stocks due to report earnings over the next 2 weeks. Serge Berger, from the thesteadytrader.com, has spotted what he thinks is an opportunity to make a medium term trade.
Barrick Gold Corporation has seen a a major line of support going back to 1998, the last time the level was tested in July last year, the stock bounced sharply. Serge now sees it perking up again and says that “over the ensuing months the stock began to form a constructive looking bottom that included a higher low. Since its 2011 double-top the stock traded significantly lower alongside the price of gold but given the constructive price action over recent months, it now looks ripe for a better mean-reversion move back to the upside.”.