Can strong quarterly profit spark further gains for Barrick Gold stock?

Traders Union
All News
Stocks
Barrick Gold jumps 2.14% to C$57.27

Highlights

Barrick Gold reported a net income of $1.6 million for Q1 fiscal 2027, reversing a net loss one year earlier.
Revenue fell 11% to $3.265 billion, but adjusted core figures rose 51% and gross profit increased 23% to $89.6 million.
Shares closed at C$57.27 with short- and medium-term bullish momentum, but overbought technical readings signal possible short-term correction within a C$54.77 to C$59.77 range.

Net profit rebound and special dividend drive renewed buying

Barrick Gold reported a net income of $1.6 million in the first quarter of fiscal 2027, a marked turnaround from a net loss a year earlier and a key driver of buying interest in the shares. While revenue declined 11% year-over-year to $3.265 billion, the core underlying figure rose 51% after adjusting for forward sales, illustrating operational strength and improved sales dynamics. Gross profit also increased by 23% to $89.6 million, pointing to stronger cost discipline, and Barrick Gold paid a total of $35.1 million in dividends—including a substantial special dividend—further attracting yield-focused investors. The company also sold 463,000 ounces of gold and 14 million ounces of silver during the quarter, contributing to a positive market response.

Bullish signals and overbought risks as key levels hold

On the hourly chart, ABX is trading above the MA-20 at C$53.72 and the MA-50 at C$53.76, while remaining below the MA-200 at C$58.34. The Ichimoku Kijun line at C$53.43 stands as immediate support. MACD and ADX are both in buy mode, confirming the current bullish drive. However, RSI at 71.62, Stoch RSI at 100, and CCI at 120.04 all sit in overbought territory, signaling the risk of a short-term pullback despite prevailing positive momentum. Bull/Bear Power reads 1.61, revealing continued intraday buyer dominance, and the Awesome Oscillator supports the upward move, although overbought oscillators suggest caution is warranted in the immediate term.

Volatility band defines upside potential amid breakout risks

Over the next several days, ABX is likely to fluctuate within a C$54.77 to C$59.77 volatility band relative to current levels. There is a 67% probability of further upside continuation, with a 33% chance of a move lower. Should price break out above C$59.77, a stronger bullish run could follow; conversely, a decline below C$54.77 would point to renewed selling pressure and potential short-term weakness.

Viktoras Karapetjanc, expert at Traders Union, sees Barrick Gold’s recent profit swing as a significant turnaround. He highlights strong operational momentum, robust dividend payouts, and sustained production as reinforcing current investor confidence. Macro sentiment is supportive, with positive news flow driving inflows and keeping momentum elevated despite short-term overbought conditions. Karapetjanc believes ABX remains constructive above immediate support and favors further upside. "Barring an unforeseen reversal, this profit-driven rally and healthy dividend story should keep Barrick Gold attractive to buyers in the near term."

Earlier, analysts noted that Barrick Gold was consolidating within a defined range, facing technical headwinds that limited near-term upside. The latest quarterly results and ongoing positive momentum reinforce this cautious outlook, with traders advised to monitor the C$54.77 and C$59.77 volatility band for key breakout or breakdown signals in the days ahead.

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.