Trading Idea: Is Barrick Gold close to Support?

Published on Monday, 18 June 2012 07:36 Written by TradersHuddle Wire

New York, June 18th (TradersHuddle.com) - Shares of Barrick Gold Corporation (NYSE:ABX) are trading very close to calculated support at $38.04 with price action closing at just $39.51 and placing the stock near levels where traders will start paying attention.

Barrick Gold's stock range is defined by its calculated support defined at $38.04 and by the resistance level at $43.30, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Barrick Gold's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $43.30 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.