The price of gold has declined below the weekly pivot at $1,300 an ounce, presenting a potentially lucrative buying opportunity. The nearly $100 drop in the metal over the past two weeks is about half of the recent run-up from the double-bottom lows. Despite the recent decline, SPDR Gold Shares (NYSE: GLD) is up nearly 7% as the first quarter comes to a close. However, over the past 52 weeks, GLD is down 28%. And as you can see in the chart below, miner Barrick Gold (NYSE: ABX) has been hit even harder, off 38%. On… Read More
The price of gold has declined below the weekly pivot at $1,300 an ounce, presenting a potentially lucrative buying opportunity. The nearly $100 drop in the metal over the past two weeks is about half of the recent run-up from the double-bottom lows. Despite the recent decline, SPDR Gold Shares (NYSE: GLD) is up nearly 7% as the first quarter comes to a close. However, over the past 52 weeks, GLD is down 28%. And as you can see in the chart below, miner Barrick Gold (NYSE: ABX) has been hit even harder, off 38%. On July 5, ABX made an extreme low at $13.43, but this low was not accompanied by new highs in volatility. This bullish divergence suggests a long-term bottom was put in place. Sideways trading action between $22 and $14 since April has midpoint support at $18 to lean on. The $8 channel targets $30 on an upside breakout above $22 resistance. #-ad_banner-#The $30 target is about 68% higher than recent prices, but traders who use a capital-preserving, stock substitution strategy could make nearly 200% returns on a move to that level. One major advantage of using a long call… Read More