$ABX, Barrick Gold Corporation

$ABX Daily Chart

Trade Date: 04/25/17

Barrick Gold, the gold mining company, missed on first quarter earnings reporting $0.14 per share shy of the forecasted $0.20. In addition, the company lowered guidance stating that output is expected to slow while costs are expected to rise. What? Oh well, you can’t always strike gold right? Unless you short this stock! Am I right? Bwahahah ok I’ll stop.

Trade Style: Day Trade

Position Bias: Bearish

Technical Criteria

  • Price Change: - $ 0.71 and -3.73%
  • Premarket Volume: 104,810 shares
  • Daily Average Volume: 14.0 million shares
  • Average True Range: $ 0.55

Entry Price & Time

            Literally the most no brainer entry I’ve ever made. I think I thought about whether I should enter this trade or not for a total of 1 nanosecond. This was my favorite setup, with a perfect entry. 

            Entry Price: $ 17.98

            Entry Time: 9:33 AM

            Stop Price: $ 18.23

            Risk: $ 0.25

$ABX Entry on 1 min. chart

Trade Management and Psychology

            This stock just trended lower without stopping. Eventually it was so far from my entry that whatever bounce it made didn’t bother me. This was a very relaxed trade.

Exit Price & Time

            I suspected that $ABX would break below $17 after tapping on it 3 times. On the 4th time it finally broke below. Fortunately it was before my exit, allowing me to capture a bit more.

            Exit Price: $ 16.91

            Exit Time: 3:30 PM

$ABX Exit on 5 min. chart

$ABX Trade Executions

Results and Evaluation

            If I could just replace this paragraph with a virtual image of me dancing, I would. But I won’t.  $ABX broke below $17.00 at 3:06PM! That’s why you hold as long as you can.

Risk: $ 0.25

Reward: $ +1.07

R Multiple: + 4.18 R