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ABX None

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Barrick Gold - ABX - cls: 28.45 chg: +0.49 stop: 27.75

Company Description:
Barrick is a leading international gold mining company, with a portfolio of 27 operating mines and seven advanced exploration and development projects located across four continents, and a large land position on the worlds best exploration belts. (source: company press release or website)

Why We Like It:
The sharp sell-off in ABX over the past couple of weeks has stalled at very significant support. The stock has actually spent the last few days consolidating sideways above support near $28.00. Today's relative strength (+1.7%) could be the beginning of a new leg higher again toward the top of ABX's wider trading range in the $32.00 region. We are suggesting long positions now with ABX above $28.00. More conservative traders may want to wait for a move past $28.60 or its 10-dma near $28.65 before initiating positions. We'll put our stop loss under the March low. Our target is the $31.25-32.00 range. The P&F chart points to a $38.00 target. It's important to note that while this looks like a low-risk entry due to ABX's support the gold stocks may have a tough time moving higher. The oversold bounce in gold futures is stalling and the commodity looks poised to move lower in the short-term.

Picked on March 12 at $28.45
Change since picked: + 0.00
Earnings Date 05/24/07 (unconfirmed)
Average Daily Volume: 5.1 million
 

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