As we can see from the chart the stock price has deteriorated as the dash for cash continues and has broken well below its 200dma and once again sits some $18.00 below its peak of about $55.00. This stock may decline a little more as the summer season has rendered gold directionless. However we believe that the downside for Randgold is limited, as the majority of the sellers have bailed out and the speculators will be considering another run at Randgold.
Back to the chart where we can see that the technical indicators are well and truly planted in the oversold zone and we can see just what a roller coaster ride this stock is experiencing. The volatility of the gold market is reflected in this stocks behaviour so don’t expect it to abate anytime soon. However we do anticipate that the upward trend will resume shortly for both the metals and the quality producing stocks with Randgold doing particularly well.
Randgold Resources Limited has a market capitalisation of $2.76 billion, a P/E ratio of 45.37 with 76.32 million shares outstanding and trades around 1.0 million shares per day.
Randgold Resources Limited trades on the London Stock Exchange under the symbol of RRS and on the NASDAQ under the symbol of GOLD.
Hang on in there.
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