There’s a long-standing debate over whether gold or Bitcoin (CRYPTO:BTC), often referred to as digital gold, is a better store of value.
With numerous parallels drawn between the two, ardent supporters of each point to the limited supply of both Bitcoin and gold as protection against inflation.
Both may offer opportunities for long-term investors, but with Bitcoin taking a breather recently, technical traders may be looking to take their cryptocurrency profits to companies focused on exploring, mining, and producing gold.
Barrick Gold Corporation (NYSE:GOLD), Kirkland Lake Gold (NYSE:KL) and Carlyle Commodities Corp. (OTC:DLRYF) all look bullish going into the week, with charts primed for a bullish move and gaps overhead.
The Barrick Gold Chart: Barrick Gold, a gold and copper miner headquartered in Toronto, broke up from a seven-month long downtrend on April 6 after crossing above the eight-day exponential moving average (EMA) and the 21-day EMA. Barrick Gold’s stock also gained, and began trading above the 200-day simple moving average (SMA), indicating that sentiment in the stock is now bullish.
On April 16, Barrick Gold’s stock regained a resistance level at $22.08, which is now acting as support. Since regaining that level, Barrick Gold’s stock has been trading in a sideways consolidation pattern above support.
Bulls want to see an increase of bull volume to come into Barrick Gold’s stock for it to reach its next resistance level near the $24 mark. If the stock can regain that level of support, it has room to move up to $25.87 before meeting another resistance level. It should be noted there is an overhead gap just above the $28 level, and, with gaps filling 90% of the time, it’s likely Barrick Gold’s stock will reach that level in the future.
Bears want to see Barrick Gold’s stock continue to retest support near $22, which will eventually weaken it. If Barrick Gold loses that support level it could trade back down towards the $19.85 level.
The Kirkland Lake Chart: Kirkland Lake, a gold producer operating in Canada and Australia, broke up from a descending trendline on April 9. The stock has been trending downwards since August 2020 when it made a new all-time high of $57.69.
On April 20, Kirkland Lake’s stock regained a support level at $38.14 and has since been consolidating over top of it.
The stock is trading above both the eight-day and 21-day EMAs as well as the 200 SMA, all of which are bullish. Like Barrick Gold’s stock, Kirkland Lake has an overhead gap near the $47 level, which is likely to be filled in the future.
Bulls want to see Kirkland Lake’s stock continue to hold support above $38 and for bull volume to enter the stock and push it towards the next resistance level at $41.52. If the stock can regain that level, it has room to move up towards $43.94.
Bears want to see Kirkland Lake’s stock fall back below $38.14, which could force it to retest $35.63.
The Carlyle Commodities Chart: Carlyle Commodities, a Canadian precious metals exploration company, has been trading in a bullish descending channel since Sept. 3, 2020, and on April 14 broke upwards from it. The bullish break caused the eight-day EMA to cross above the 21-day EMA, which is bullish, and Carlyle Commodities is now trading above both EMAs, which will now act as support.
On Wednesday, Carlyle Commodities regained the 200 SMA, which indicates that the sentiment in the stock is now bullish, and on Thursday Carlyle Commodities’ stock closed over its resistance level at 15 cents, which will now act as support.
Increasing bull volume has entered into the stock over the past week and, since volume often precedes price action, a larger move upwards in the stock could be in the cards.
Carlyle Commodities, like Barrick Gold and Kirkland Lake, has a gap above at the 21-cent level, which is likely to be filled in the future.
Bulls want to see sustained bull volume for Carlyle Commodities’ stock to fill the gap and make its way back towards its next resistance level at 26 cents. If it can regain 26 cents, it has room to move towards the 30-cent mark before reaching another resistance zone.
Bulls want to see bear volume come into the stock to push it down below support at 15 cents. If Carlyle Commodities loses support at 15 cents, it could revisit the upper sloping trendline of the descending channel.
GOLD, KL and DLRYF Price Action: Gold closed Friday at $22.21. Shares of Kirkland Lade closed at $38.51, and Carlyle Commodities’ stock closed the week at $0.156.
Author: Melanie Schaffer