BARRICK GOLD OVERSOLD AND AT SUPPORT – TIME TO BUY AHEAD OF A BOUNCE?

Barrick Gold has been under pressure along with the rest of the mining stocks recently. However, now it's oversold and trading at support. Is this a tradable entry for the bulls or a set-up for more misery?Barrick Gold (NYSE: ABX) shareholders have been forced into playing the endurance game recently as the stock has been anything but rewarding for the bulls. While the chart suggests that lower prices may still lay ahead for the stock, it also suggests to technicians that a short-term bounce could also play out.How high can ABX bounce?Technicians note that Barrick Gold shares may be setting up for a counter-trend bounce that could take the stock up to the $16.92 level – which is a 38.2% retracement of the sell-off that started in mid-August as well as a horizontal line of resistance created by multiple periods of trading congestion. Any break and close below the $15.26 level will no doubt cause a flurry of stop-loss selling - so caveat emptor!How to play ABX at this point?Adventurous bulls may be wading into this stock at current levels with the idea of holding on for a move up to the $16.92 resistance level – nearly a 10% move from current levels. Those not so willing to catch a falling knife will likely be waiting for whatever rally occurs to sell / short into that move – thereby sticking with the downtrend that is clearly dominating ABX shares.