Randgold Resources

Tuesday, 21st March 2017 15:02 - by Rajan Dhall

Recent price action in the Co.'s shares has been bullish since the start of the year, prices have pushed higher but fell short of testing the 8000 level. The miner has now  found itself in a consolidation range between 7585 and 6800 and is largely dictated by volatile gold prices.

At each end of that range we find price stick between areas in which many shares have been traded at price. Where 7400 and 6800 both represent mean value in previous consolidation periods. The RSI is just hovering in bullish territory above the 50 level but this came after a bullish hidden divergence was observed around the Mar 12th when it entered the oversold area, this is traditionally a bullish sign and it seems the market are looking to settle around the 7000 handle. 

At the moment Gold is looking slightly toppy and after one more push higher looks like to could retrace. The key element here is risk, stock markets keep moving up and Fed members keep talking up rate hikes to the point that 3 hikes are priced in. Moving forward if inflation in the US is marked down then we could see those pressures eased and gold rise again. At the moment as things stand it looks like we could be in for a retracement to the downside. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.