The door is open. Barrick as a surrogate for gold stocksBarrick alone won't force other gold stocks higher or lower, but it has been a bit of a drag on the GDX. Prices quoted are in $US.
GLD did not make a lower low, this trip down, so experts say it needs to strongly move up through 128, or we run a greater risk of this downside correction dragging out several more weeks. Today it hit $128.06, and is trading at $127.84. We want GLD to advance toward 131, & and not break down through 126 again. If it does that we could be on the way to the 140s. So at least the door is open.
What about Barrick/ABX? It needs a strong break up through $12.50 to demonstrate it has potentially bottomed. Barrick hit $12.62 today and is trading at $12.59. You may recall Barrick bottomed in September 2015, while the rest of the market took several more months. The market had a nice rally in 2016. If ABX is no longer a drag on the GDX fund, the market may be poised to rally.
Will the door stay open, or close?