Barrick Mining Falls 1.20% To Two-Week Low As Profit-Taking Emerges After 40% Rally

Barrick Mining (B) declined by 1.20% to close at $23.97 in the latest session, establishing a new two-week low at $23.93. This price action concludes a 3.83% retreat from the recent peak of $24.48, suggesting potential profit-taking after a significant uptrend from the May low of $17.41 to the August high. The daily candle formed a bearish hammer pattern near the session low, signaling indecision after the retreat from the peak.
Candlestick Theory
Recent candlestick patterns highlight key inflection points. The August 13th bullish engulfing pattern at $23.86 validated the breakout above the psychological $23.50 resistance. However, the failure to hold above $24.00 last session followed by the latest bearish close creates a lower high structure. The current price defends the immediate support at $23.93 (August 19th low), while resistance consolidates between $24.45–$24.48 – the double-top formation from August 18–19. A sustained break below $23.93 would expose the next significant support zone near $23.50.
Moving Average Theory
The 20-day EMA ($23.35) remains above both the 50-day EMA ($22.60) and 83-day SMA ($21.10), confirming the primary uptrend. Price currently trades above the 20-day EMA, though the narrowing gap between the 20-day and 50-day EMAs suggests deceleration in short-term momentum. The layered support of moving averages below the price ($23.35–$22.60) provides a technical buffer against bearish pressure. Failure to hold above the 20-day EMA may initiate a test of the 50-day EMA.
MACD & KDJ Indicators
The MACD histogram has turned negative for the first time since early August, signaling waning bullish momentum as the MACD line (0.78) converges toward the signal line (0.85). Meanwhile, the KDJ oscillator shows a bearish crossover with the %K line (42) crossing below the %D line (53) from overbought territory (>80 on August 15th). This dual momentum deterioration suggests further consolidation or retracement is probable near-term. No divergence is evident with price yet.
Bollinger Bands
Bollinger Bands (20-day, 2σ) are contracting after the sharp August expansion, reflecting declining volatility. Price is testing the middle band ($23.35) after previously hugging the upper band during the rally. The contraction phase typically precedes decisive breakouts; a confirmed close below the middle band could signal a move toward the lower band ($22.50), while holding the midline would maintain the uptrend structure.
Volume-Price Relationship
Distribution patterns surfaced during the retreat, with the August 19th decline occurring on elevated volume (16.5M shares vs. 30-day avg: 13M). This contrasts with the August 13th advance (18.5M shares), which lacked proportional volume commitment. Such divergence between advancing and declining volume suggests waning conviction in the uptrend, requiring monitoring for persistent selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (55.2) has retreated from near-overbought levels (72.1 on August 15th) but holds above neutral. While not yet signaling oversold conditions, the downward trajectory aligns with price retracement. Given the RSI's position, additional consolidation appears plausible before renewed upside attempts. Historically, the RSI has respected the 40–45 zone as support during this uptrend.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from the $17.41 low (May 16) to $24.48 high (August 19), critical retracement supports emerge at $22.81 (23.6%), $21.78 (38.2%), and $20.94 (50%). Shorter-term retracement from the $24.48 high anchors immediate support at $23.93 (23.6% of $2.35 range). Confluence exists at $23.50 (psychological level + 38.2% near-term retracement), a pivotal support zone.
Convergence is observed between Bollinger Band midline ($23.35) and the Fibonacci 23.6% level ($23.93), reinforcing the significance of the current $23.93–$23.35 support band. However, bearish momentum signals from MACD and KDJ, coupled with elevated volume on declines, caution that failure to maintain this confluence could trigger a deeper retracement toward $23.50. Divergence remains minimal, suggesting no immediate trend reversal signal.