Trading Idea - Is Barrick Gold close to Support?

Published on Friday, 30 July 2010 05:00 Written by Christian Paolinetti

New York, July 30th (TradersHuddle.com) - Shares of Barrick Gold Corporation (NYSE:ABX) are trading very close to calculated support at $39.67 with current price action closing at just $40.54 places the stock price near levels where traders will start paying attention.

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 $39.67 and by the resistance level at $42.83, which should be used by traders planning their trades.

Traders wanting to establish a position should place 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 $42.83 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.