MACD and average lines with a technical buy signal

The five-year chart of Canadian gold producer Barrick Gold (NYSE GOLD / WKN 870450) shows that an upward breakout from the blue triangle formation that has existed since 2019/20 was achieved a few days ago amid increasing turnover.

Source: Comdirect

The six-month chart has shown a rising trend below the blue trend line since October – however, it was not possible to rise significantly above the two averages until the turn of the year, resulting in a fall to just under 19 Canadian dollars from January. The rebound, which was always above the red trend line, began quickly from this point and, once the two averages had been overcome once again, led to an explosive upward surge that has currently taken the price to close to the blue upward trend line at CAD 26.

The average lines have ultimately been moving sideways since October – after a six-week phase, the 100-day line recently succeeded in overcoming the 200-day line on the upside – a technical buy signal. Both lines are currently rising, which is also a positive sign.

The MACD indicator also generated a buy signal – back in February – when the blue line crossed the red line to the upside. A few weeks later, the trend confirming indicator also broke above the neutral 100 and entered positive territory, where it continued to rise. The overbought/oversold indicator has three high points, none of which were able to reach 2.0 – this would have been considered overbought. This indicator is currently at a clearly positive 1.0, but is not currently overheated. The Chaikin Money Flow, which has been indicating a reduction in capital outflow since the beginning of February as it eased into the red zone, also showed an emerging price turnaround – money has been flowing into the share for four weeks now – the indicator is in the green zone.

Source: Comdirect

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