Dominic Picarda’s Technical Take
Rangold Chart
The big sell-off in Randgold was not entirely unhealthy from a technical viewpoint. The price did not fall below its March 2011 lows, thereby keeping the long-term uptrend intact. Randgold had also become somewhat stretched on its weekly and monthly momentu indicators, a problem that has been eliminated through its plunge. Ideally, I would now like to see Randgold overcome its 55-week exponential moving £59.80 average, a line below which it has been trapped for more than six weeks. Assuming it can do so, I would like to buy into the ongoing uptrend every time the price pulls back to its 13-day EMA and then rallies anew. A return to the highs at £74.87 would make an obvious medium-term objective.
July 2012 | www.financial-spread-betting.com | 87