Finweek English Edition - - COMPANIES & MARKETS -

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.