Barrick Gold Corporation (NYSE: ABX)

Barrick Gold Corporation engages in the exploration and development of mineral properties in the United States, Canada, Australia, Argentina, Chile, Peru, the Dominican Republic, Papua New Guinea, Tanzania, Zambia, and Saudi Arabia. It primarily explores for gold, copper, and nickel deposits. The company’s principal properties include Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, and Veladero.

Take a look at the 1-year chart of Barrick (NYSE: ABX) below with my added notations:

1-year chart of Barrick (NYSE: ABX)

Over the past two months, ABX has formed a key level of resistance to watch at the $19 (red) mark. The stock tested that level twice back in September, and yesterday the stock tested it again. A strong close above that $19 level should lead to higher prices.

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The Tale of the Tape: ABX has a key level of resistance at $19. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $19.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach