Options Trading Analysis: Barrick Gold Corp (NYSE:ABX)

By | Subscribe to IBTimes's | October 26, 2012 6:12 PM IST

Options Trading Analysis: Barrick Gold Corp (NYSE:ABX)

Barrick Gold Corp’s options trading set a new 90-day record for the number of Call contracts that exchanged hands. The volume of Puts was 3,243 and Calls was 11,228 equating to a 0.29 Put/Call Ratio (PCR).

Options can be used as predictors of stock behavior. Investors can use PCR’s as technical indicators to read for signs of institutional sentiment.

The PCR’s offer insight to investors and can be used as either a direct or contrarian indicator for trading decisions.

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Unusual volume provides reliable clues that the stock is expected to make a move.

A high PCR signals Bearish Sentiment and a low PCR signals Bullish Sentiment

Shares of Barrick Gold Corporation rose 1.02 (+2.65%) to finish at 39.49 Thursday.

The price of ABX ranged between 39.07 – 39.63 on the day.

Volume: 5.7-M is lower that 3 month average volume of 8-M shares.

ABX is trading below its 50 and 200 Day MA.

The stock’s 52 wk low is 31.00 and 52 wk high is 53.26.

Earnings Date: 56.47

Analyst’s Recommendation: Buy (Early Call)

1 Year Price Target Estimate: 56.27

To date, the stock has gained 18.15% within the last Quarter.

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Analysis Overall Short Intermediate Long
Neutral (-0.04) Very Bearish (-0.50) Neutral (-0.08) Bullish (0.47)

Recent CandleStick Analysis Very Bearish

Date Candle
24 Oct 2012 Bearish Engulfing
22 Oct 2012 Bullish Engulfing

Open Gaps
Direction Date Range
up 16 Aug 2012 34.74 to 34.94
down 8 Oct 2012 41.78 to 41.7

Support and Resistance
Type Value Conf.
resist. 42.96 4
resist. 42.21 2
resist. 41.74 2
resist. 40.77 2
resist. 39.76 13
supp 38.68 3
supp 38.13 7
supp 37.12 3
supp 36.11 3
supp 34.92 4
supp 31.57 2

Technical Indicators
Ind. Short Inter Long
EMA VBe Be VBu
MACD VBe Bu VBu
RSI Be
TDD Bu
Fibs VBe Be Bu
Highs VBe N VBu
Lows VBu Be N
Trends VBe N N
Stoch. VBe
VBu=Very Bullish, Bu=Bullish
N=Neutral
Be=Bearish, VBe=Very Bearish

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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