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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Randgold: Testing The Reversal 0 comments
    Jan 15, 2014 4:33 PM | about stocks: GOLD

    Today's session in Randgold Resources Limited (GOLD) saw a gap-lower open that pushed down as far as 60.89.

    This prior report on GOLD stated the following:

    "Our hard-stop remains at 59.19 and we now have a soft-stop at 60.82.

    The probability is that neither stop will be threatened. However, there is still the possibility of a price spike to the down-side (a test), just to keep everyone a little on edge."

    The morning's down-side spike was indeed a test of the reversal.

    Price action came within 7-cents of the soft stop listed above before reversing to close higher.

    We initiated another trade with an entry point of 61.22. The requirement for this trade is the same as before: The trade must be in the green at the close.

    Note that this is not an "addition" to the prior trade but a trade that stands on its own. It has its own stop and target levels. The stop and target just happen to be the same stop and target as the prior trade.

    For the test to be confirmed, price action must pull away quickly from the lower levels.

    (click to enlarge)GOLD Daily

    Charts by StockCharts.com

    Looking at the daily chart, one can be fairly sure that the reversal is complete. There may be additional shake-out attempts but as a result of the swift and decisive price action today, the probabilities appear to be low.

    If we do get a move back to the 61.00 -area, the entire reversal scenario may be in question.

    Disclaimer:

    This report is for discussion purposes and contains our opinions only.

    This posting is to publicly document our thinking and market analysis actions within the Three Ten Trading entity. The data was obtained from sources believed to be reliable. However, we make no guarantee as to the accuracy of that data.

    Investing or trading in equities, futures or options may result in a significant loss of capital, total loss of capital or a loss greater than available capital.

    We are not advocating any stock or in any way offering portfolio management advice or stock selection service.

    Respectfully,

    Paul Mosgovoy, President: Three Ten Trading, LLC

    Thank you for reading.

    Disclosure: I am long GOLD, .

    Themes: Long ideas, Gold Stocks: GOLD
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