Barrick Gold (GOLD) technical analysis – Barrick Gold (NYSE:GOLD)

Shares of Barrick Gold Corporation GOLD are slightly higher Monday. They are resistance and can break through it. This can lead to the shares moving higher and a new Uptrend formation.

Barrick’s graph has the attention of many technical analysts because there is well -defined support and resistance. That is why it is our stock of the day.

Gold acts near all time. And Barrick followed it. Some analysts say that the move is higher a classic ‘flight to safety’. The technology sector was crushed and much of the money that came out went to the gold market.

You can see on the graph that Barrick is exchanged around $ 19.00 close to the resistance. This level has been important for the stock. It has been both resistance and support.

Resistance is defined as a price level or zone where there is a considerable amount of sales interest. When a rally reaches a resistance level, it pauses or ends. This is because there are enough sales orders to fill in all buying orders.

Investors and traders who want to buy can acquire all the shares they want without pushing the price.

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If the resistance ‘breaks’, which means that the stock is moving above it, it can be a bullish dynamic. This means that the people who have created the resistance with their sales orders are out of the way. They are ready or canceled.

The buyers can be forced to pay premiums and bridge each other. This can lead to a snowball effect that can create a new upward trend.

There is resistance around the level of $ 19.00 because of repentant buyers. These are people who bought shares around $ 19.00, while the shares were support.

When the price fell below, many of them decided that they made a mistake. Some promised to finally end up in breaking if possible. So when the share returned to $ 19.00, they placed sales orders.

The great concentration of these orders has formed resistance. But if the gold price continues to move higher, Barrick has to break this resistance and also move higher.

If gold keeps the trending, higher barrick will probably break through.

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