Approaching Support- Barrick Gold

Published on Monday, 23 January 2012 07:00 Written by Danny Miller

New York, January 23rd (TradersHuddle.com) - Shares of Barrick Gold Corporation (NYSE:ABX) finished near calculated support at $43.72.

Current price action with, the Gold miner based in Toronto, Canada closed at $45.83 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Barrick Gold's current stock range is defined by current calculated support defined at $43.72 and by the resistance level at $48.52.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Barrick Gold's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $48.52 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.