Technical Analysis on Barrick Gold Stock and Gold Commodity - Forex News by FX Leaders

Technical Analysis on Barrick Gold Stock and Gold Commodity

Posted Sunday, January 27, 2019 by
Konstantin Kaiser • 2 min read

NYSE:GOLD MONTHLY CHART

The Barrick Gold stock price has endured heavy losses since 2010. With it quickly recovering from its all-time-low at $6 all the way up to nearly $23, the price declined again down to $10.

Recently facing rejection at very strong resistance at around $14, it is potentially on its way to the support area at $10.30-$11 again.

NYSE:GOLD MONTHLY CHART

The bullish implies a bounce off the support zone, most likely at the golden pocket at $11.30. If the golden pocket fails to hold, our next buy-target would be at the lower region of the support at around $10.30, where the trendline of the symmetrical triangle acts as additional support.

We could then assume a rise up to the resistance at $13.66 where the upper trendline of the triangle acts as additional resistance. If we break through the resistance, we could assume a continuation of the uptrend due to the bullish breakout of the symmetrical triangle.

 

NYSE:GOLD MONTHLY CHART
The bearish scenario suggests a break of the support at around $10.30 which would simultaneously result in a bearish breakout of the symmetrical triangle. This could lead to a decline down to the next support at around $5.80.

BATS/GOLD DAILY CHART
The daily RSI is near oversold regions. We can assume a short-term trend reversal very soon. However, a price decline of 5.50 percent seems likely due to the fact that the RSI is likely to reach oversold regions which would simultaneously result in prices declining down to the golden pocket zone, where a bounce-off seems very likely.

TVC:GOLD WEEKLY CHART
Gold (commodity) price is currently sitting at the 0.382 fib level and is located in high overbought regions in the daily chart. While the decline could already start by a rejection of the 0.382 fib resistance, the weekly shows a very strong resistance at around $1350. Additionally, the weekly RSI is close to overbought regions which makes rejection of the very strong resistance even more likely.

Thus, a rise of 7% is possible, but it should be quickly followed by a drop of 6-20% at least. The decline could already start now. Consequently, we could conclude bearish prospects for Gold in the short to medium term.

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About the author

Konstantin Kaiser // Professional Analyst and Day Trader
specializing in the Cryptocurrencies market. Konstantin is also a popular financial writer covering the blockchain for websites like fxleaders.com and investing.com.
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