Despite closing higher today, ABX is now looking like it could possibly be forming a Diamond Top Formation. Although it may be a little early to say, that is why I'm giving ABX a WAIT signal. It did trade as low as $42.66 and bounced back up to close higher at $44.34, but it is still below yesterday's 52 week high. A Diamond Top Formation is one of the hardest pattern to observe and in the case of ABX it is also at the same time trading in an up trending channel which could be contradictory. Basically, I cannot pull a conclusion based on the current observation. A fall below the downward trend line would break the channel line, but if a Diamond Formation happens it could still bounce back up the next time it hits $42.00 where it has support. ABX could continue to trade between $42.00 and below $45.00 for the next few sessions, and as long as the closing price stays below the 52 week high, the formation could still be valid. Also Gold has hit yesterday the level of 1150 for which I expected to hit before it could possibly pull back. This would coincide with a possible pull back from the Dow Jones also, which have been very positively correlated for the last few months. Again, for now ABX is a WAIT as it's too early to say if this is indeed a Diamond Top Formation or a continuation of the up trending channel line.
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