High positive correlation between gold price and gold stock

3 ก.พ.

As it can be seen in the chart we have a high positive correlation between gold prices and Barrick Gold Corporation as they move together.

Previously as stock prices formed a new high gold price failed to do so and this represents a bearish divergence between prices and caused stock price to move lower sharply while gold price remained roughly around the prices it was.

Now as Gold stock price creates a new low and broke bullish structure to the downside we could expect gold spot price to follow the move and also break the structure to the downside.