Look to buy, ideally on more weakness. Gold Fields has dropped over the short term to reach line 1 support (R113/R114). Lines 2 and 3 form a channel, which is still pointing to a lower short-term target closer to its 200-day moving average (support) at R108. However, much depends on the gold price itself and an upside breakout in the gold price (see chart) will result in Gold Fields rallying from there (R116 at the time of writing). One bullish short-term factor is that its stochastic oscillator is oversold. The current strategy is to wait and see. If it drops further – eg, to R108,50 – then buy. But if it continues straight up from here and closes above R121,60, buy then. Take trading profits at R129. The stop-loss for buying on further weakness towards R108,50 is a close below R107. The stop if buying on a close above R121,60 is a close below R115.