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Home / Trade Alert / Sell – Randgold Resources (RRS)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Sell – Randgold Resources (RRS) - 8 October 2015

Opening Price Stop Loss Profit Limit Reward vs Risk CFD Margin
4324p 4600p (274p/6.3% above) 3590p (736p/17.0% below) 2.7x 5%

Observations – For

  • Stochastics turning over at overbought
  • RSI topped out at overbought
  • Positive directional indicator plateaued
  • Stops are above 200-day MA
  • Potential inverse H&S being formed

Observations – Against

  • MACD still rising
  • Momentum still rising
  • No bearish cross by directional indicators
  • No reversal on Point & Figure chart
  • Shares broken above 100-day MA

Analyst Comments

Gold found resistance at $1150 which keeps it within the confines of a narrowing pattern. Safehaven Gold has failed to benefit from recent uncertainty, hindered by USD strength. Years of raw material over-investment amid high prices is starting to bite with supply gluts and expensive restructuring required to maintain profitability. Tiny dividend yield.

Consensus target price implies just 6% upside from current levels. While only 12% of brokers are sellers, if everyone is neutral/positive, who’s left to buy and push the shares any higher? Note 44% of brokers have target prices below the current share price.

Next Event:  5 Nov, Q3 results

Latest Broker 12-Month Consensus:  44% Buy, 44% Hold, 12% Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Boomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

12-months (daily) – MACD, Stochastics, Directional Indicators, RSI, Momentum

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr
Perf % 10.3 14.3 -11.7 2.6 -2.8 45.2 -33.5 -33.2
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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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