We reported a major breakout from a bullish Inverse Head-and-Shoulders pattern on February 22, 2020 ($28.37 – solid lines) and provided an initial Point & Figure target of $33. After a temporary dip in March (A), Barrick Gold (Friday’s close $35.36) reached and exceeded our $33 target (B). The stock is currently in the midst of a minor correction toward its rising 40-week Moving Average (40wMA), to provide another attractive entry point. There is good support near $28-30, but only a sustained decline below the 40wMA (currently near ±$27) would be negative. Behaviour indicators including the rising 40wMA and the rising trend-line (dashed line) confirm the bullish status. After the correction, Point & Figure measurements provide targets of $44 and $47. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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