High positive correlation between gold price and gold stock
As it can be seen in the chart we have a high positive correlation between gold prices and Barrick Gold Corporation as they move together.
Previously as stock prices formed a new high gold price failed to do so and this represents a bearish divergence between prices and caused stock price to move lower sharply while gold price remained roughly around the prices it was.
Now as Gold stock price creates a new low and broke bullish structure to the downside we could expect gold spot price to follow the move and also break the structure to the downside.
Previously as stock prices formed a new high gold price failed to do so and this represents a bearish divergence between prices and caused stock price to move lower sharply while gold price remained roughly around the prices it was.
Now as Gold stock price creates a new low and broke bullish structure to the downside we could expect gold spot price to follow the move and also break the structure to the downside.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.