Barrick Gold Stock Is Struggling To Find Support

The stock of one of the world’s largest gold and copper miners Barrick Gold Corp (NYSE: GOLD) has been feeling the heat, as the price of the yellow metal continues to slide. The company is also undergoing a process of selling some of its assets, such as gold mines, located around the world. Recently, the gold miner sold one of its mines, Laguna Norte, to a company from Singapore. Barrick Gold says it is focusing on some of its other better-performing assets, which is in line with the company’s asset-reduction policy, announced in 2019.

Looking at the technical picture of GOLD on our daily chart, we can see that the stock has been on a steady decline from around the end of August 2020. This, of course, correlates closely with the overall price of gold, which has been drifting lower since about that period as well. The share price is now approaching one of its key support areas, at 21.47, which is currently the lowest point of February. At the same time, GOLD continues to trade below its short-term downside resistance line taken from the high of January 7^th. Although there is indication for a possible further decline, we would still need to see a drop below that 21.47 hurdle, before getting a bit more comfortable with lower areas.

If the stock ends up breaking below that 21.47 zone, this will confirm a forthcoming lower low. That’s when we will target the 19.86 area, marked by the low of April 7^th, 2020. GOLD could stall there for a bit, but if there are still no new buyers in sight, a further slide might bring the share price to the 18.26 level, marked by the low of March 31^st.

The RSI is supportive of the downside scenario, as it currently points lower and sits below 50. The MACD, on the other hand, remains flat, but continues to run below zero, while coinciding with its trigger line. The MACD is more in line with the idea of waiting for a break below the 21.47 hurdle first.

Alternatively, if the share price makes a move higher, breaks the aforementioned downside line and then pops above the 22.69 barrier, marked by the high of last week, that may attract more buying-interest. GOLD could then move to the 23.95 area, marked near the highs of January 14^th and 20^th, where it could stall temporarily. However, if the buyers are still active, the next potential target might be the 24.85 zone, or the 25.34 level, marked by the highest point of January and the low of November 11^th respectively.

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