I am a novice at best when it comes to TA but an observation I notice that may generate interest to a TA specialist whose comments I would be glad to hear.

Unlike Goldcorp who approached or hit a 52 week high during the gold run-up to 1900, Barrick is well off their 52 week high (10%+) ... It also seems to me there could be the formation of a handle which could result in a fairly quick 10% run up esp if gold holds/ consolidates slightly upwards over the next week.

The futures market only provides slight clues to ABX increasing more, but if there is validity to the "cup and handle" it could indicate an opportunity for Barrick in terms of going long.

The January call option premium for G at 54 is 6.31(close 51.14) whereas ABX at 54 is 6.52 (close 49.76). Obviously since G has a lower premium component 2.76 vs 4.24, the market is pricing in a higher probability of an ABX upturn.

If you believe that gold stands a solid chance of exceeding 2000 by year end ... the market would suggest buying call options on G while going long on ABX.

Thoughts from others?

Better diversification on XGD so for some time I have been playing the options game on xgd (not all that successfully given the lagging mining shares to gold ratio). Hence my analysis on the two biggest components and the reason I'd like some thoughts.

orgy