Good afternoon, everyone,
This is Lester Davids here with a short-term move on DRD gold update.
So we've seen some nice follow-through on the share from about 1640, which was an alert on the market minutes page from around 1640 on the 3rd of July, all the way up to 1824 today which is an 11% move to the upside, in fact we did over the last couple of days, that was Thursday the 11th, hit a high of 1842 so a nice short term play for those who latched onto the move.
Over the longer term possibly higher levels but for now we are actually sitting in overbought territory we've got an RSI of above 80, and if I have a look at tactical the reading on the tactical trading guide (this is a live reading which I've just requested) we've got the seven day trend overbought, we've got the 14 day trend which says “very bullish” but for the short term the one to 10 days it says “very strong move up buyers in control do not chase”, just for some clarity do not chase meaning do not try and buy at current levels, I think that the reward-to-risk is probably not as great in the short term as it's been over the last couple of weeks, and then for the medium term reading (which is two to four weeks) is also says “aggressive buying do not chase, look for overshoot and failure to shoot back to the 8-EMA area” and then for the five to eight week move it says “attempting to advance whilst in a bullish regime use the pullback or the price close or the 8 weekly EMA as an accumulation zone so for now overbought.”
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Lester Davids
Analyst: Unum Capital
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