Randgold Resources Limited (GOLD) is shaping up well as its stock price heads towards what might just be a wonderful buying opportunity.
From the chart above we can see that Randgold is heading towards its 200dma and the RSI is heading towards '30' which is where we would like to see them before re-purchasing this stock. You may recall that we bought Randgold on the 18th of June 2008 for $37.65 and sold them recently for an average price of $68.69 for a return of 82.44%. We then took an aggressive stand and bought PUTS on Randgold which we held for one month and then sold them for 100% profit. So Randgold has been good to us.
The next few weeks should see an end to the consolidation in the precious metals sector as September onwards usually brings a rise in gold prices and Randgold tends to react in a fairly dramatic style. The volatile nature of this stock also makes it a prime candidate for a 'pop' at the occasional options trade.
So, summer doldrums or not, stay awake and do your homework, setting the targets with which you are comfortable in advance. Something that we are not good at but thats no excuse for you!
Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS.
Have a sparkling day.
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