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« PM Stocks Fight Back with a 5.28% gain on the HUI | Main | Yamana Gold Incorporated: Stock Price Clobbered »
Thursday
Feb042010

Randgold Resources Limited: A Buying Opportunity Approaches

Randgold chart 05 Feb 2010.JPG

Randgold Resources Limited (GOLD) has been taking a battering lately along with most other gold producers which is interesting to us as we like this stock a lot but do not own any of it at the moment. The current correction could present us with the buying opportunity of the year so its now time to watch it carefully and be prepared to pounce.

As we can see from the above chart this correction could well bring Randgold back into the frame as a Buy having fallen 5.91% today alone and to close at $67.29. This is a fair way down from its recent high of almost $90.00 per share, a price that left us thinking that we might never own it again. Still never say never in this business, its so volatile and can change on a dime as we have said many times before.

The RSI looks as though it is about to fall through the '30' level which makes it a buy in our eyes, however, we will wait and see just what the next few days can throw at us before making a move. We have bought and sold this stock in the past and also traded Randgold's PUT and CALL Options with some success so we are keen to repeat the process.


Randgold Resources Limited trades on the NASDAQ under the symbol of GOLD and on the London Stock Exchange under the symbol of RRS and has a market cap of $6.06 billion.


All the best.

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Reader Comments (3)

Did you close out AEM May 60 calls you recco'd on Jan 25?

February 5, 2010 | Unregistered CommenterR.W. Sochor

OK, sounds interesting. Please let us know what you suggest for option calls. Because of the price for Randgold, I believe that the options would serve me better for a short term trade. I am sitting now with a expensive position in FCX where the bottom fell out and wondering if it will come back soon. So much depends on the demand for copper.
John

February 5, 2010 | Unregistered CommenterJohn Ell

RW Sochor,

We did not close AEM Calls we still hold them and they closed up about 50% today, or about 17% on the trade. We post every trade we make so you will be informed if and when we close this position. Next week we will probably place a stop and we will let you know that too, just as soon as we have arrived at a decision, hope this helps.

John,

We are looking at the June series, however, the bid and ask moved to higher ground quickly today, so we decided not to chase it, interestingly the $70.00 strike price finished at $7.20 -$7.50, but the last trade was at $5.50 so maybe other traders also stepped aside. We'll be back!

February 5, 2010 | Unregistered CommenterGold Prices

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