Is Barrick Gold Expecting Resistance Soon?
Published on Thursday, 24 January 2013 06:08 Written by TradersHuddle Wire
New York, January 24th (TradersHuddle.com) - Barrick Gold Corporation (NYSE:ABX) ended the trading session at $34.08, near its 50 day moving average set at $34.33. Barrick Gold's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $33.31 and resistance at $35.06. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in Barrick Gold, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.