Apart from the fact that Barrick Gold (ABX) is down 4% since last Thursday's high at 47.65, the overall pattern off of its July low at 39.67 still remains potentially extremely combustible -- as long as the series of higher pullback lows since last August remains intact.

Providing that key support at 45.00 and 44.76 remains viable, once the current pullback runs its course in the upcoming hours, the larger pattern argues for an approaching upside pivot reversal in the vicinity of 45.50, that propels ABX towards another confrontation with key resistance at 47.60/70, which should be hurdled on the way to 49.50-50.00.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.