U.s. stocks begin to overall look alarmingly hot out and with that, we turn this week, once again, the attention to the companies that operate within the Guldmining sector. We choose to focus on the company Randgold Resources with a strong report in the back turned at an interesting support and created a potential double bottom.
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Swing-trading opportunities in the us equity markets has been restricted in a part in and with the recent surges why, this week, we again turn the attention to the gold stocks that look clearly attractive at current levels. An important factor of the Gold-mining shares is, of course, the development of gold prices, and after having been thrown back and forth since the end of February so it seems despite all we get higher highs and higher bottoms. This is a constructive behaviour and really quite normal before the new trend really puts.
Randgold Resources released the 4 may a report that the market seems to have liked. The company make good money and lets me understand that they currently have a cost of production around 619 dollars/ounce.
The actual share has remained in a positive trend since september 2015. The first peak came in the summer of 2016 before the share as well as the sector in general took a real deep dive before a lågpunkt in december last year. Lågpunkten came out in a way that sends a very positive long-term signals.
Randgold Resources (daily chart)
Then in december last year, we are looking for an initial rise further to a bottom, as long as the positive price structure persists, have the ability to launch the rally that we are looking for long-term. 4 may com a the bottom into in connection with the quarterly report, a bottom which, together with the previous lågpunkt in march creates a potential double bottom.
When we take a look at our trend filter in the form of 200-day and 50-day moving average, we can see that the two trendar down, and in addition are quite close to each other. Now, if Randgold Resources would break the recently set double bottom, this is clearly negative but can we get a closing above both the averages, well then, it looks significantly more positive. Then it is likely only a matter of time before we get a bullish-cross and can tick off the medium-haul the trend as positive to begin with.
Randgold Resources (daily chart)
Structurally, from an Elliott wave perspective, we can not with a sufficient degree of probability say that it is time for månresan yet, it is possible that it will come much later and that the stock comes back down again. Not rarely see man after a first phase of up to it takes a good while before it all takes off for real. Therefore, we are content to note that as long as lågpunkten around 83 dollars keeps should share, in each case clear of the at mightily with that challenge both the previous highs around 94 dollars but also the level at 106 dollars. The purchase is proposed at the time of closing above the moving average of 89.40 dollars with the emergency exit door positioned at a daily closing below 86 dollars and a målkurs at 106 dollars.
It turns out that our set-up goes well, we value the situation in order to possibly relatively rapidly to new tag alternative if we must have further patience.
Randgold Resources – an overview
Entrance buy
$89.40
Ticker
GOLD
Målkurs
$106.00
Market
The Nasdaq
Emergency exit
$86.00
P/E (est 2017)
27.10
Latest
$88.83
Direct avk. (est 2017)
1.9 %
As usual, it is important to keep in mind that gold stocks are very volatile, which is something you should take into account when and if you take the position.
