I opened a LEAP call option with strike price of 40 if I am not mistaken. Willing to accumulate more should it continue to come down to $20 on the share price.
This was one of Warrens only Canadian holdings through out last year. It is trading at a massive discount.
It is a great hedge against a bearish market on the long side.
The case against it would be...
Barrick Gold is way oversold and appears to have nice support in the $29-30 range. Daily & weekly RSI in the 40s/30s and trending upward, along with ascending 200 dma on the weekly which we're well above.
I believe this will be the start of a year long uptrend IF volume appears soon and we can keep closing above ~$29. In order for this to happen, the gold chart...
Based on current support and resistance over the last couple months and other indicators, we should see another uptrend to around $35 to $40.
I would set a stop loss in case the trend does reverse but from the looks of it, it will be uptrend.
Looking at the daily chart for ABX, it is at the really critical level.
RSI is oversold for the first time in the daily chart this year, and there is confluent layer of trading volume in this trading range:
resistance (Feb 25th, 2020)
support (June 5th, 2020)
Also, XAUUSD is at 200MA in daily chart as well.
We can expect relief rally if...
The canal broke last month and the trend tend to be bullish.
In the next few days we might see a clear trend appear and we might be able to use new information in a more glabal view to take actions.
To be honnest I'm gonna wait until an oppurtunity to open to jump in.
BARRICK GOLD - ABX
Nice climb up as SAFE HAVEN IN GOLD STOCKS...during these times. Recently given upgrade valuation.. NEW YOR analysts. AVERGE TARGET --- C$28.84 ▲ (8.88% Upside). UPSIDE GOLD
Always do your own due diligence, full research, and homework, and consult with your own licensed investment...