In this week’s Oracle, we take a look at Barrick Gold (ABX). There are a few signs that lead me to believe we are primed for a rally in this stock. The first sign is the drop in volume, as the stock forms its pivot point. This tells us the sellers are easing up on the selling pressure, and it’s usually what we see before a stock rallies.
The gaps above the market is another sign that helps draw the stock up to fill those gaps and the last signal is the price divergence from the 20-period moving average. This moving average is where I’ve set my short-term price target, which is also the level where the second gap would be filled.
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