MACD indicator generates buy signal
The six-month chart of Canadian gold producer Barrick Gold (NYSE GOLD / WKN 870450) shows an increase of around 30% from June to the end of October. The subsequent crash wiped out almost all the gains. The 100-day line was quickly breached, creating a price gap, but the 200-day line was not sustainably breached in the short term and is currently acting as a support line. The resulting gap was created with normal turnover and should therefore be closed again according to chart theory.
The average lines and indicators support the assumption of an upcoming price recovery. For example, after the 100-day line broke through the 200 upwards (considered a buy signal) in June, the 100 continues to run above the 200, which is fortunately still rising steadily. The 100-day line has ended its upward movement and has recently only been moving sideways.
The MACD indicator generated a buy signal in the second half of November when the blue line crossed the red line on the upside – this is currently still valid. The more complex DMI indicator is also positive – the rising green line has crossed the now falling red line and the blue line indicating trend strength is also clearly rising. The trend confirmer shows an upward turnaround from the six-month low – albeit with a pause that is still in negative territory below the neutral 100. The Chaikin Money Flow has been showing a steady inflow of capital since mid-October due to the fact that (with one minimal exception) it has been permanently in the green. The fact that the high points in the green zone are ultimately rising is also positive.
Source: Comdirect
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