Chart of the Day: This EPS Diplomat Holding Has a 'Golden' Look
This name is one of the leading gold miners — and the chart shows why that is true.
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If you have been following the commodities market this year then what you have seen has been the amazing rise of gold and silver markets to new all-time highs. No surprise there really, it just took quite a bit of time to get there.
Why no surprise?
Well, just look at all of the money printing that has been happening for years and continues to this day, which is inflationary. Remember, too much money chasing too few goods is inflationary, and as a hedge against losing buying power (which is what is sapped by inflation) investors look for alternatives like hard assets. Gold is a favorite.
Now, the gold mining stocks would be a good place to look if you were not interested in the physical metal itself. With gold making new highs all year long it's probably not hard to find the best performers. Barrick ( (B) ) is one of them. This company is second largest gold miner in the world behind Newmont (NEM) , and also mines copper.
The Barrick chart is very strong, as you'll see below. This recent addition to the Pro Portfolio is found within the EPS Diplomats basket, which shows where the power of earnings are at.
The chart shows a strong trend of higher highs, higher lows, which is our textbook pattern of an uptrend. Volume trends are strong and bullish, with moving average convergence divergence (MACD) on a buy signal and money flows robust.
The candles are blue, indicating a strong bullish condition on the GoNoGo composite of indicators. We could see a move to $40 before too long.
As a member of the EPS Diplomats basket, Barrick has no rating in TheStreet Pro Portfolio.
At the time of publication, TheStreet Pro Portfolio was long B.
