Thursday, 9 March 2017

ABX - battling to build a floor

The precious metals continue to lean weak ahead of next week's FOMC. That is keeping the related miners pinned lower. Barrick Gold (ABX) settled -0.8% at $17.68. For now, the mid term bullish trend - from the multi-year low of Sept'2015, remains comfortably intact.

ABX, daily

ABX, monthly


Today saw the third consecutive daily close under the 50dma. That sure isn't a good sign, but then ABX - along with all of the other miners, had a powerful run from the Dec'2016 low to mid February. A retrace/cooling cycle was due.. and we've likely seen the bulk (if not all) of the move.

Things remain bullish unless rising trend - linking the Dec'2015 and Dec'2016 lows, is broken. Further, there would only be 'full bearish clarity' if the Dec'2016 of $13.78 is taken out, and that looks extremely unlikely.

Best guess: the miners are close/at a short term floor, with the mid term bullish trend set to re-assert itself into the late spring/early summer.

Things turn hyper-bullish if the July 2016 high of $23.38 is taken out.

For those with a serious interest in the precious metals and related mining stocks...