For the last few years, gold mining stocks have been out of favor, performing worse than the precious metal itself. This tendency began to change in the second half of 2015. Gold futures did not bottom until Dec. 3, and the nearest contract is just below the 200-day simple moving average of $1,132.1 per Troy ounce.
Barrick bottomed on Sept. 23. The stock has been above its 200-day simple moving average since Jan. 25, when the average was $8.87. Newmont bottomed on Aug. 26 and popped above its 200-day simple moving average of $20.04 on Monday.
All four gold mining stocks are scheduled to report quarterly results this month. Barrick and Newmont report on Feb. 17, with analysts' earnings-per-share estimates of 8 cents and 15 cents a share, respectively. Yamana reports on Feb. 18, with an expected loss of a penny a share. Goldcorp reports on Feb. 25, with an expected earnings of 4 cents a share.
Here's a scorecard for gold and the four gold mining charts.
Here's the weekly chart for Barrick Gold.
Courtesy of MetaStock Xenith
Barrick Gold had a close of $10.07 on Monday, up 36.4% year to date and 70.4% above its Sept. 23 low of $5.91.
Talk about volatility! The stock is still in bear market territory, 26.5% below its April 29 high of $13.70.
The weekly chart is positive, with the stock above its key weekly moving average of $8.66, but well below its 200-week simple moving average of $19.90.
Weekly momentum is projected to rise to 76.85 this week, up from 68.79 on Jan. 29. Momentum scales from 00.00 to 100.00, with a reading below 20.00 oversold and a reading above 80.00 overbought. A rising reading above 20.0 is positive, while a declining reading below 80.00 is negative. This study is shown in red along the bottom of the chart.
Investors looking to buy Barrick should place a good-till-canceled limit order to purchase the stock if it drops to $8.55, which is a key level on technical charts until the end of this week. Investors looking to reduce holdings should enter a GTC limit order to sell the stock if it rises to $14.11, which is a key level on technical charts until the end of 2016.