Is Barrick Gold oversold?

Shares of Barrick Gold Corporation closed the trading session at $44.67 well below calculated support at $49.76 placing the stock in oversold territory, as investors and money managers have been moving out of the stock

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

Barrick Gold’s stock was trading in a well defined range with support at $49.76 and resistance at $53.14, prior to its decline. It was evident how traders went out of the stock, when it broke calculated support sparking the current down draft.

From a technical perspective the Barrick Gold stock is in severe pain, as the harsh sell-off could place a heavy burden of buyers wanting their money back, generating a price dynamic where buyers will become sellers when a bounce materializes. It can be expected that previous support becomes resistance, as a new range gets defined, therefore the maximum move for the stock should be calculated to return to previous support at $49.76. Traders wanting to establish a long position in Barrick Goldto play an oversold bounce should consider waiting for evidence of buying at a specified area to use it as a pivot placing stop losses. - TradersHuddle

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Posted by admin on Dec 15 2011. Filed under Gold stocks. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry