In the first week of January, the long spell of 14-year-high of the U.S. dollars ended and this paved way for the gold prices being lifted. What is to follow is the fact that the rise in metal is letting the gold stock being enhanced. Barrick Gold Corporation (USA) (NYSE:ABX), for instance, started tring by an increase of 6.2%.
Barrick Gold Corporation, the most active gold stock in recent times
If we look at the activeness of gold stock, we find that this company has the most active past. However, the put/call open interest ratio (SOIR) of company’s Schaeffer’s reached lower than 80% in 2016. So, when we look at the gold stock, we realize that the factors that affect the stock in the short term are mostly call-heavy.
The factors that can help Barrick Gold Corporation stock gain ground
Beyond the limits of options pits, there are indicators of cynicism. These indicators are most likely to assist the stock in its favour, calmly making way for it to start gaining on charts in the market.
For example, let’s have a look at the short interest. When Barrick Gold Corporation recently announced the financial report for the previous two quarters, its short interest increased over 11%. While the second half of the previous year was not too shining for the gold prices, Barrick Gold Corporation continued to fall dramatically. But, the positive sign is that the stock has been trying to reinstate faith by making stronger attempt for redeeming itself on the technical front.
Since then, the company’s shares have increased over 25%. So, there has been a foothold that the stock has reclaimed.
How will the Barrick Gold Corporation stock get the buying power?
Considering all the aforementioned factors, it wouldn’t be wrong to say that Barrick Gold Corporation needs to maintain capitulation and momentum. The company’s submissive attitude to the sudden upgrades needs to be in place, so as to reinstate the buying power of investors.