Barrick Gold stock forecast: Support pressure keeps sellers in control

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Barrick Gold slides 3.39% to C$50.09

Highlights

Barrick Gold acquired a 9.9% stake in Kingfisher Metals by investing C$20.9 million, aiming to expand its exploration pipeline.
Proceeds from the deal will primarily finance Kingfisher's HWY 37 project in British Columbia, enhancing project development activities.
Barrick shares remain under heavy selling pressure, trading below key moving averages with momentum indicators confirming a bearish outlook and a high probability of further downside within the C$49.04–C$51.14 range.

Capital deployment risk rises as Barrick expands exploration pipeline

Barrick Gold recently completed a strategic investment, subscribing for approximately 15.5 million units of Kingfisher Metals Corp. at C$1.35 per unit, resulting in a 9.9% equity stake on a non-diluted basis. This action expands Barrick Gold's exposure to new exploration projects, increasing its future project pipeline but raising near-term capital deployment. The transaction's gross proceeds of C$20,885,761 will be directed primarily toward the HWY 37 project in British Columbia, and according to Canadianminingjournal, Barrick Gold reported $23.56 billion in revenue and $6.98 billion in net income, maintaining its position among the top Canadian mining companies, though price action has remained under broader selling pressure.

Bearish momentum deepens with resistance capping oversold price action

ABX is trading below the MA-20 at C$52.16 and MA-50 at C$51.7 on the hourly chart, and below the MA-200 at C$57.29 on the daily timeframe. The Ichimoku Kijun line, now at C$52.02, forms immediate resistance, constraining price recovery efforts. Momentum indicators paint a bearish technical backdrop: MACD continues to issue a Sell signal while ADX is neutral. RSI stands at 36.72 (Sell), and both Stoch RSI and CCI are in oversold territory, indicating extended downside movement with limited short-term buying momentum. Bull/Bear Power is deeply negative, confirming seller dominance in intraday action. The market remains in a moderate volatility regime, trading near session lows with persistent downward pressure despite oversold conditions and a divergence between oscillators and actual price trend.

Consolidation likely as upside odds diminish amid strong resistance

Over the next 2 to 3 trading days, ABX is forecast to consolidate within a price band of C$49.04 to C$51.14, in line with typical volatility for the current setup. The likelihood of an immediate upward move is low at 21%, while the chance of a continued downward move is higher at 79%, making a near-term rebound less probable. The baseline scenario is continued consolidation within this corridor. Should ABX decisively break above Kijun resistance at C$52.02, a retracement could develop, but if price falls below C$49.04, further declines may be triggered.

Anton Kharitonov, expert at Traders Union, believes Barrick Gold's strategic investment in Kingfisher Metals increases long-term optionality but adds short-term capital risk. He sees the technical landscape as bearish, with ABX trading below key moving averages and momentum indicators signaling persistent selling pressure. Consolidation within the C$49.04–C$51.14 range is likely, and a breakout above C$52.02 is needed to improve outlook. "Until ABX reclaims the C$52.02 resistance, I remain cautious on any near-term rebound prospects," he comments.

Earlier, analysts noted that Barrick Gold was under persistent bearish pressure, with a lack of clear momentum hindering the potential for a sustained rebound. Current technical signals and continued downside price action reinforce this outlook, making the next decisive move dependent on whether ABX can reclaim resistance at C$52.02 or risks further declines if support at C$49.04 is breached.

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.