Barrick Mining's Stock Jumps 8.18% on Elevated Volume, Two-Day Rally Reaches 9.83% with Strong Technical Buy Signals

Barrick Mining's recent price action demonstrates a sharp 8.18% surge on the most recent session, extending its two-day rally to 9.83%. This upward momentum, observed against a backdrop of elevated trading volumes (24.5 million shares), suggests strong buyer participation. Key support levels are emerging at $36.55 (Nov 21 close) and $35.81 (Nov 11 close), while resistance appears to form around $39.64 (Nov 24 high). Candlestick patterns, such as bullish engulfing and hammer formations, validate the recent strength, particularly near the $37.73–$39.54 range.

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Candlestick Theory

The recent price action features a bullish engulfing pattern, where a larger bullish candle (Nov 24) completely engulfs a smaller bearish candle (Nov 21). This signals a potential reversal from bearish to bullish momentum. Additionally, the formation of a "hanging man" at $37.73 (Nov 19) was negated by subsequent buying, reinforcing the upside bias. Key support at $36.55 is reinforced by a prior rejection on Nov 21, while resistance at $39.64 aligns with the most recent high.

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Moving Average Theory

The 50-day moving average (approximately $34.50) and 200-day MA ($32.50) are well below the current price of $39.54, indicating a strong bullish trend. The 100-day MA (~$35.50) also supports the upward trajectory. The price’s position above all three averages confirms a long-term uptrend, while the narrowing gap between the 50-day and 200-day MA suggests accelerating momentum.

MACD & KDJ Indicators

The MACD histogram remains positive, with the MACD line ($1.20) above the signal line ($0.80), signaling sustained bullish momentum. The KDJ stochastic oscillator shows %K ($82) and %D ($78) in overbought territory, suggesting potential exhaustion. However, the lack of bearish divergence between price and %K implies the uptrend may persist.

Bollinger Bands

The current price of $39.54 sits near the upper Bollinger Band ($39.64), reflecting heightened volatility. The recent contraction of the bands in early November (width < $1.50) followed by expansion (width ~$2.20) suggests a breakout scenario. Traders should monitor a potential pullback to the mid-band (~$37.70) as a short-term target. <br>Volume-Price Relationship

The surge in volume (24.5 million shares on Nov 24) aligns with the price increase, validating the strength of the rally. However, the relatively lower volume on Nov 21 ($574 million) compared to Nov 24 ($955 million) may indicate a test of $36.55 support. Divergences between volume and price are minimal, suggesting the uptrend remains robust.

Relative Strength Index (RSI)

The 14-day RSI stands at ~75, indicating overbought conditions. While this typically warns of a potential correction, the RSI’s sustained position above 60 since late October suggests a strong bull market. Traders should watch for a drop below 60 as a possible trigger for profit-taking.

Fibonacci Retracement

Key Fibonacci levels derived from the August low ($21.00) to the November high ($39.64) include 61.8% at $32.50 and 78.6% at $35.00. The current price of $39.54 suggests a test of the 100% extension level (~$48.00) is within sight, assuming the uptrend holds.

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Backtest Hypothesis

A backtest of an RSI-based overbought strategy (2022–present) revealed mixed results. While the strategy aimed to capitalize on overbought RSI readings (e.g., 67.41 in Nov 2022) to anticipate corrections, Barrick Mining’s price continued rising, defying technical signals. This divergence highlights the influence of strong fundamentals—such as Elliott Investment Management’s stake and favorable gold prices—on the stock’s trajectory. The strategy’s underperformance underscores the need to integrate fundamental analysis with technical indicators, particularly in volatile commodity sectors.