Trading Idea - Is Barrick Gold close to Resistance?

Published on Wednesday, 01 February 2012 06:12 Written by Christopher Lynn

New York, February 1st (TradersHuddle.com) - Shares of Barrick Gold Corporation (NYSE:ABX) are trading very close to calculated resistance at $49.90 with the current price action closing at just $49.26 placing the stock near levels that make it difficult to buy.

Barrick Gold Corporation (NYSE:ABX) is an international gold company with operating mines and development projects in the United States, Canada, South America, Australia, and Africa.

Barrick Gold's current stock range is defined by current calculated support defined at $45.20 and by the resistance level at $49.90, 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 Barrick Gold, as the stock is well above support, however, as the stock pulls back towards $45.20 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 $49.90 then traders will get an opportunity to enter Barrick Gold stock by establishing a position as the stock moves to a higher range.