Gold is bearish, while Barrick Gold is relatively weak AF. PUTS!
Hey all,
My friend was asking me about Barrick Gold so I threw together this little chart. He had a ton of fundamental analysis about why Barrick was a good play, but this chart says enough.
Puts on Barrick Gold while Gold continues to trade weak down this channel. Considering longterm we're bullish on gold because of this decade long cup and handle, we're now forming the 'handle', which typically falls around 1/3 down the cup. That puts us around $1550, and Barrick Gold would be weak. Stop loss on the breakout from this channel (around $1830 at this point, but any break from this channel would do as we continue to fall).
I havent' look at the some of the confirmation bias reasons in the fundamentals of a bearish view of Barrick, or the IV relative to the option expiry dates, but I'm guessing we move down fairly quickly.
My friend was asking me about Barrick Gold so I threw together this little chart. He had a ton of fundamental analysis about why Barrick was a good play, but this chart says enough.
Puts on Barrick Gold while Gold continues to trade weak down this channel. Considering longterm we're bullish on gold because of this decade long cup and handle, we're now forming the 'handle', which typically falls around 1/3 down the cup. That puts us around $1550, and Barrick Gold would be weak. Stop loss on the breakout from this channel (around $1830 at this point, but any break from this channel would do as we continue to fall).
I havent' look at the some of the confirmation bias reasons in the fundamentals of a bearish view of Barrick, or the IV relative to the option expiry dates, but I'm guessing we move down fairly quickly.