This Miner Looks Ripe For A Breakout
Mike Paulenoff | May 15, 2015 03:05PM ET
The action in the shaded area (from Dec. 2014 through Friday) includes the powerful upmove in the US Dollar Index from 85.00 to its March high at 100.39 (+18%) and thereafter, down to the 93.20 level (-7% from the high).
What stands out is that during the entire timeframe, both Spot GOLD and Barrick Gold Corporation (NYSE:ABX) exhibited significant relative (and counter-intuitive) strength during the sharp climb in USD.
Both commodity-precious metal and mining patterns bottomed during the meteoric, relentless climb in the dollar.
Now that the dollar is under corrective pressure, ABX in particular looks ripe for an upside breakout from its Dec.-May. base pattern.
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