American Barrick (Gold:NYSE) ....(My Game Plan)
I am looking at a American Barrick (GOLD) purchase opportunity on weakness at slightly lower levels.
My trigger level is a PRZ (Price Reversal Zone) from approx $16.90 to $15.90 which would satisfy the completion of a bearish Crab pattern and the initiation of the final leg of Cypher pattern whose price objectiveiisi around the $27 level.
If things fully work out, and they rarely all do, this idea thus carries a 10:1 reward ratio.
Now you have to like gold in general and gold shares in particular to even consider this trade.
Barrick's price momentum seems extended and subject to weakness.
Barrick recently increased their dividend and one should expect more as major gold companies are experiencing major free cash flow surpluses.
2 points to consider in the shorter term:
1) We have a small gap above here which may be filled and
2)the completion of an ABCD leg may draw in some bottom feeders.
If we take out the dotted blue line I may have to reevaluate my thinking.
This is a 4 hour chart.
Watch the broad market, the Gold price and the GDX for further directional clues.
As always this is not investment advice and do your own due diligence on any positions.
We are coming into a period of characteristically rapid turmoil so don't be married to any position or view and be nimble.
If in doubt... stand aside !!
Good Luck
S.
