Barrick Gold (ABX) is looking nearly identical right now, with shares bouncing lower in a downtrending channel of their own. The unique thing about Barrick is the fact that it's slipping lower at the same time many other gold miners are bottoming and looking attractive. The lower lows in ABX should be sending investors an important signal here: Sellers are clearly in control of this stock.
As with PTR, Barrick's shares are testing resistance right now. The past few times ABX tested trendline resistance, the outcome was a push back down to ever-lower levels of trendline support. Unless shares break outside of the channel, ABX is likely to do the same thing this time around.
If you want exposure to gold miners right now, other setups (like the Goldcorp (GG) setup I pointed in "5 Huge Stocks That Could Slingshot Higher") look less ugly.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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