Can Barrick Gold stock break resistance after Hillsdale stake increase?

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Barrick Gold gains 2.56% to C$52.11

Highlights

Hillsdale Investment Management increased its stake in Barrick Gold by 13.9% in Q1, demonstrating growing institutional conviction.
This accumulation from a notable asset manager may be contributing to recent buy-side demand and supportive price momentum.
Technicals indicate short-term bullish momentum with the stock likely to remain between C$50.33 and C$53.35, but overbought signals and mixed indicator readings suggest caution around sustainability of gains.

Institutional accumulation boosts buy-side demand amid portfolio shifts

Hillsdale Investment Management Inc. has expanded its position in Barrick Gold by 13.9% during the first quarter, according to MarketBeat. This increase in institutional holdings reflects active portfolio allocation toward the miner, creating additional buy-side demand for the stock. The move likely contributes to current market strength as investor accumulation can reinforce positive price momentum.

Bullish momentum meets mixed signals as indicator divergence widens

ABX/CAD is trading above the 20-day moving average, which sits at C$51.61, but remains below the 50-day and 200-day moving averages at C$52.44 and C$57.07, respectively. The Ichimoku Kijun level, currently at C$51.31, is acting as immediate support. The Relative Strength Index (RSI) stands at 60.68, with the Average Directional Index (ADX) delivering a Buy reading, both indicating bullish momentum. However, overbought signals from the Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power suggest dominant buyers in the short term, while the Moving Average Convergence Divergence (MACD) issues a Strong Sell signal and the Awesome Oscillator remains neutral, highlighting a divergence between momentum indicators.

Mild bullish bias as price nears volatility-driven resistance

In the near term, ABX/CAD is expected to remain within a price range of C$50.33 to C$53.35, based on typical volatility. The probability for an upward move is slightly higher at 52%, compared to 48% for a downward move, making a reversal less likely but still possible. Should resistance be overcome, a bullish scenario could take shape; failure at the support level near the Kijun line may prompt sellers to regain control.

Viktoras Karapetjanc, analyst at Traders Union, sees clear signs of institutional accumulation in Barrick Gold, with a significant increase in holdings by Hillsdale indicating renewed confidence. He notes bullish signals from momentum indicators, supported by buy-side demand. Some conflicting technical readings remind him to watch for volatility, but sentiment remains constructive. "With institutional inflows and strong short-term momentum, I expect ABX/CAD to favor the upside as long as support near C$51.31 holds."

Earlier, analysts noted that Barrick Gold was experiencing bearish momentum amid persistent technical pressure and heightened downside risk. The recent uptick above short-term averages and renewed institutional interest signals a developing shift in sentiment, making a sustained close above the 50-day moving average a pivotal level to confirm an emerging bullish trend.

Source of Data: ABX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.