Trading Idea - Is Kinross Gold close to Resistance?

Published on Sunday, 08 January 2012 18:40 Written by TradersHuddle Staff

New York, January 8th (TradersHuddle.com) - Shares of Kinross Gold Corporation (NYSE:KGC) are trading very close to calculated resistance at $12.39 with the current price action closing at just $12.30 placing the stock near levels that make it difficult to buy.

Kinross Gold Corporation (NYSE:KGC) is involved in the exploration, development, and production of gold in countries located around the world. The company is the fourth largest primary gold producer in North America by reserves.

Kinross Gold's current stock range is defined by current calculated support defined at $10.80 and by the resistance level at $12.39, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Kinross Gold, as the stock is well above support, however, as the stock pulls back towards $10.80 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $12.39 then traders will get an opportunity to enter Kinross Gold stock by establishing a position as the stock moves to a higher range.