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Key Takeaways
- Barrick Gold shares surged more than 9% on Monday after the Canada-based gold miner posted better-than-expected second-quarter results, driven by buoyant gold prices and robust production.
- The company reported gold production of 948,000 ounces, easily surpassing estimates of 905,800 ounces, helping to eases concerns over output.
- The share price has broken out from a flag, a chart pattern that indicates a continuation of the current move higher.
- Amid further upside in Barrick Gold shares, investors should monitor important chart levels at $18.15, $20.20, and $25.
Barrick Gold (GOLD) shares surged more than 9% on Monday after the Canada-based gold miner posted better-than-expected second-quarter results, driven by buoyant gold prices and robust production.
Despite favorable tailwinds from the yellow metal, the mining giant has underperformed rivals this year over output concerns linked to planned maintenance at several of its key mines. However, during the quarter, the company reported gold production of 948,000 ounces, easily surpassing estimates of 905,800 ounces, helping to ease those fears.
Below, we take a closer look at the technicals on Barrack Gold’s weekly chart and discuss key price levels likely to gain interest from investors amid the potential for further post-earnings gains.
Breakout From Flag Pattern
Since finding support around the 50-week moving average (MA) in early June, Barrick Gold shares posted four consecutive weekly green candles before forming a flag, a chart pattern that signals a continuation of the current move higher.
Indeed, the price has broken out from the flag this week and closed above the respected 200-week MA in Monday’s trading session. Moreover, the relative strength index (RSI) inches towards overbought territory, pointing to strong price momentum.
Key Barrick Gold Price Levels to Monitor
Amid further upside in Barrick Gold shares, investors should monitor three crucial chart levels that will likely gain attention.
Firstly, it’s worth watching the $18.15 area. Although the stock’s price closed above this level on Monday, it remains an important location near a horizontal line that connects multiple peaks and troughs dating back to September 2021, which may flip from providing prior resistance to offering future support during retracements.
A decisive close above this level could fuel a rally up to $20.20, an area on the chart that may generate selling pressure from a trendline linking comparable price action between March 2021 and May 2023. This region could also run into overhead resistance from a multi-year downtrend line joining the prominent August 2020 and April swing highs.
Finally, a more bullish move may see the shares climb to $25, where sellers could materialize to book profits in the gold miner near the May 2021 swing high, which also closely aligns with several trading levels around the April peak.
Barrick Gold shares rose 9.1% to finish Monday’s regular trading session at $18.99. The stock added another 6 cents in after-hours trading.
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