Barrick Mining Surges 9.62% Over Three Days on Bullish Patterns and Strong Volume

Barrick Mining has experienced a sharp three-day rally, surging 9.62% with a 4.37% gain in the most recent session, closing at $47.74. This price action suggests a potential bullish continuation, supported by a bullish engulfing candlestick pattern and strong volume. Key support levels are identified at $43.55 (December 31 low) and $42.93 (December 16 low), while resistance aligns with the recent peak at $47.74.

Candlestick Theory

The recent price action forms a pattern, where the last three days’ higher highs and higher lows indicate a shift in momentum. A critical support level at $43.55 is reinforced by a prior test on December 31, while resistance at $47.74 marks a recent psychological barrier. A break above $47.74 may target the next Fibonacci extension level at $49.50, but a failure to hold above $45.59 (December 22 high) could trigger a retest of $43.55.

Moving Average Theory

The 50-day moving average (currently around $44.00–$44.50) is positioned above the 200-day MA ($42.00–$43.00), confirming a bullish trend. The 100-day MA ($43.50–$44.00) acts as a dynamic support. Price remains above all three, suggesting a healthy uptrend. However, a close below the 50-day MA could invalidate the short-term bullish bias.

MACD & KDJ Indicators

The MACD histogram is expanding positively, reflecting strong momentum, with the MACD line (12-day EMA minus 26-day EMA) above the signal line. The KDJ stochastic oscillator shows %K and %D converging above 60, indicating overbought conditions but remaining within a bullish trend. A bearish crossover in KDJ below 50 may signal a pullback, though the MACD’s strength suggests trend persistence.

Bollinger Bands

The price is near the upper Bollinger Band ($47.74), indicating high volatility. The bands have widened recently, consistent with a breakout phase. If the price remains above the middle band ($45.00–$45.50), the uptrend is likely to continue. A retest of the lower band ($42.00–$43.00) would require confirmation of support before resuming higher.

Volume-Price Relationship

Trading volume has surged in the past three sessions, with the most recent session’s volume (18.9 million shares) being the highest in over a month. This validates the price rise as a strong institutional move. However, a divergence between rising prices and declining volume in subsequent sessions could signal weakening momentum.

Relative Strength Index (RSI)

The 14-day RSI is near 70, indicating overbought conditions. While this does not necessarily signal a reversal in a strong trend, a drop below 60 would suggest a consolidation phase. A bearish divergence (falling RSI with rising price) would increase the probability of a correction.

Fibonacci Retracement

Key Fibonacci levels from the December 19 low ($43.96) to the January 6 high ($47.74) include 38.2% at $46.00 and 61.8% at $45.00. The current price is near the 76.4% retracement level, suggesting a potential pullback to the 61.8% level before resuming the uptrend.

Confluence between the bullish engulfing pattern, strong volume, and moving average alignment supports a continuation of the upward trend. However, the overbought RSI and proximity to the upper Bollinger Band highlight risks of a near-term correction. A breakdown below $45.59 would trigger Fibonacci retracement levels and test the 50-day MA for support. Traders should monitor the KDJ oscillator for divergences and volume patterns to confirm trend sustainability.