ABX Potentially Bullish Chart Pattern Defies Disappointing Earnings Results

Despite a disappointing earnings report, Barrick Gold Corporation (ABX) has ignored past performance, and apparently is looking ahead, as the stock recovers from an earnings-reaction low at 12.40 to an intraday high so far at 13.41.

More importantly, is that ABX is pushing up against the resistance plateau atop a 6-month base-accumulation pattern, which, if hurdled and sustained (13.35/40), will trigger upside potential into the 14.80-15.00 area, and thereafter, to the 16.10/30 area.

From a big-picture chart-pattern perspective, only a failure to break out to the upside, followed by a break below 12.50/40 support, will compromise the timing of the expected next upleg.

As for our short-dated, 13.00 Calls that expire on Friday, I am holding on to the position through Wednesday’s close.

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