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Paul Mosgovoy
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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: Potential Trading Range 2 comments
    Jan 28, 2014 4:48 PM | about stocks: GOLD

    Looking at the daily chart of Randgold Resources Limited (NASDAQ:GOLD), we may have enough data to determine a trading range.

    So far, GOLD is holding just above a 38% retracement. This shallow retracement (thus far) indicates that the current move may continue on up to the to the next resistance level at the 75-area.

    The hypothesis that there will be a trading range at this point (in the 67 - 71 area) is based on analysis of the two prior up-swings.

    The swing from the pivot low at 59.19 lasted two or three days (depending on how you look at it) and had a simple, non-complex retracement into the "test" that we forecasted.

    From that point, GOLD launched into six successive gap-open higher days and now appears to be in its second correction.

    The probability of this correction being as simple as the first is low. Markets do not repeat exactly and simple corrections are typically followed by complex ones and those are typically followed by simple and so on.

    The potential limits of the trading range are identified. This range is only a possibility at this point and subsequent market action may help to define (or negate) this area further.

    (click to enlarge)GOLD Daily

    Charts by TeleChart

    Of course, we keep in mind that the whole move could experience some kind of failure and to that end, our hard stop is at 60.89 and the soft-stop is at 64.43.

    Disclosure: I am long GOLD.

    Stocks: GOLD
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Comments (2)
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  • FrankTrades
    , contributor
    Comments (103) | Send Message
    There may be more here than you project:



    There is pretty stiff volume-resistance provided by the Sept 18th-20th '13 candle range, but if that range is entered (and certainly if it is exceeded) a chance for much higher prices emerges.
    29 Jan 2014, 06:29 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Thanks for the comment.
    Yes, Randgold has the potential to move much higher. In a few days (if price action holds), it will print and out-side up on the monthly chart. I do not see those very often and can not recall the last one that I observed.


    So, I consider this a significant reversal and GOLD may rise dramatically from here.
    However, using Wyckoff and Livermore methods, I am first looking at what I see on a daily basis.


    As the price action unfolds, pulling out to the weekly and monthly time frames may provide more insight to the extent of the potential.
    29 Jan 2014, 08:25 AM Reply Like
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