Showing posts with label Barrick Gold. Show all posts
Showing posts with label Barrick Gold. Show all posts

Monday, May 7, 2007


GoldSocialTwist Tell-a-Friend
Sally Limantour

The metals sector was strong last week despite the Asian holiday, a stronger dollar and weaker oil. Copper jumped 7.2% and surged through key resistance while nickel (+10.6%) and lead (+4.3%) made new highs. This time of year is traditionally supportive to the metals as Chinese demand tends to recover following its New Year celebration and construction typically picks up in Europe and North America as the weather turns warm.

All eyes are on the gold market as we approach the $700 resistance area. Currently there is talk of a Peruvian gold mine going on strike which would threaten supply and overnight AngloGold Ashanti posted a $97 million profit for the last quarter ending in March. In a bigger picture there are other supportive factors occurring.

More and more gold mining companies are limiting their hedging practices and last week the Grand Daddy of them all, Barrick unwound a large hedge and took a loss on the position. Prior to this Barrick had been active in hedging - selling much of its production at pre-determined prices. Now, however they spent $557 million to get out of their hedging contracts and this allows them to take full advantage of rising gold prices.

The Yen continues its slide and reached a record low in Europe and this combined with a weaker US dollar continues to support gold. In Tokyo gold is challenging 26-year highs and traders are buying gold as a hedge against the weaker yen. What I find interesting is that while many investors/traders look at the stock market in terms of value relative to gold or euros, the “public” traditionally does not. Recently, however the media is highlighting these dynamics and people are starting to see that “value” is not necessarily what it appears to be. In the NYTimes last Saturday an article titled, A Comeback for the S&P (If the Yardstick is Dollars) speaks volumes. These articles are raising the awareness of gold as a way to measure value and more importantly, that it is rising relative to stocks, bonds and other asset classes.

China and India continues to be buyers of the yellow metal and even with tightening measures in China this does not seem to put a damper on demand. Money supplies are surging and while inflation numbers appear under control we cannot ignore the fact that 18 of the top 20 central banks have double-digit increases in their money supplies.

One inhibiting factor to the price of gold has been persistent legacy central bank selling. This has been a consistent theme where the legacy banks agree on an amount to be sold within a given year. As of the end of April 2007 the tonnage remaining of the announced sales will be down to 617.5 tonnes. Julian Philips of the Gold Forecaster writes that this may be ending soon. He emphasizes, “If sales continue at the rate we have seen over the last two months at around an average of 10 tonnes these sales will last just over a year before they are complete and will terminate. (

Finally, the technical picture looks healthy with gold consolidating above $675 and unable to go below $670 during April’s break. As you can see on the chart the trend remains up and corrections are becoming smaller.

Wednesday, February 21, 2007

Proprietary Scanner: Two Short-Term Trades

Proprietary Scanner: Two Short-Term TradesSocialTwist Tell-a-Friend
Fari Hamzei
February 21, 2007

Our Proprietary Scanner Report covering Sigma Channel Patterns, Dollar-Weighted Put/Call Ratios, and Market Cap-adjusted Volume Breakouts had six stock picks today for momentum players. We will discuss two of the LONG PLAYS here and tell you why. They are both traded on NYSE with liquid options.

This is why we like Cemex, S.A.B. de C.V.(CX):
1) All Time High in Price
2) Basic Materials Sector
3) Price action is still in its +1 to+2 Sigma Channel
4) Its $wP/C Ratio is 0.30 (the lower the better for stocks)
5) Daily Volume Breakout
6) Expanded Options Volume for the last two days both in contracts and premiums paid !!
7) Had another Outside Bar Reversal today
8) Our CI Indicator (Zero-lag Momentum/Trend) is positive for weekly, daily and hourly timeframes.
9) Intraday Volume Break out (IVBOs) -- those are the red bars in second subgraph.
10) Notice in the hourly chart we have not hit Weekly Resistance Level 2 or 3 yet (red lines). Use those price levels as exit targets while scaling out.

We like Barrick Gold (ABX) because:

1) Precious Metals Sector
2) Price at +2 Sigma Channel
3) $wP/CRatio is 0.24 -- has closed less than that during the last five trading days !!
4) Daily Volume Breakout
5) Huge Options Volume Expansion this week
6) Our CI Indicator (Zero-lag Momentum/Trend) is positive for weekly, daily and hourly timeframes.
7) Intraday Volume Breakout (IVBOs) -- those are the red bars in second subgraph.
8) Notice in the hourly chart we have not hit Weekly Resistance Level 2 or 3 yet (red horizontal lines). Use those price levels as exit targets while scaling out.

Disclaimer and Terms of Service

© Copyright 1998-2023, Hamzei Analytics, LLC. Hamzei Financial Network is published by Hamzei Analytics, LLC, Naples, FL 34112, (310) 306-1200. The information herein was obtained from sources which Hamzei Analytics, LLC believes are reliable, but we can not and do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Hamzei Analytics, LLC or its principals may already have invested or may from time to time invest in securities or commodities that are recommended or otherwise covered on this website. Neither Hamzei Analytics, LLC nor its principals intend to disclose the extent of any current holdings or future transactions with respect to any particular security or commodity. You should consider this possibility before investing in any security or commodity based upon statements and information contained in any report, post, comment or recommendation you receive from us. The content on this site is provided as general information only and should not be taken as investment or trading advice. Any action that you take as a result of information, analysis, or conclusion on this site is ultimately your responsibility. Always consult your financial adviser(s) before making any investment or trading decisions.