The six-month chart of the Canadian gold producer Barrick Mining (WKN 870450 / TSX ABX) shows quite ambivalent developments. The year started with a multi-month upward movement of over 20%, during which both averages were overcome – a strong decline then led the stock price to the (still intact) purple uptrend line in early April. In mid-April, there was another movement close to the six-month highs – however, there is no overlap of the price ranges in this phase with the prices before or after. Thus, a classic island gap has formed – in chart theory, a reversal formation (in the current case, it would indicate a downward price change at the top).
The island gap could lose its validity if the price gap were to close soon – thus at prices significantly above 27.50 Canadian dollars.
After all, the price is now again above both rising average lines, although the sell signal of these two lines from February (the 100-day crosses the 200-day downwards) has not yet been reversed.
MACD and Stochastics show a buy signal (in each case, the blue line crosses the red line upwards) and the Chaikin Money Flow also indicates a money inflow into the stock for almost three weeks (course in the green zone). The Overbought/Oversold indicator, with its current 0.6 points, is close to the neutral middle according to the definition of this indicator, as well as near the fluctuation middle in the six-month period view – thus there would still be room for upward movement here.
Source: Comdirect
