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Randgold: Bullish Launch From The Low

Jan. 25, 2014 1:01 PM ETGOLD
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Long/Short Equity, Special Situations, Momentum, Contrarian

Seeking Alpha Analyst Since 2013

Market updates are no longer posted to this site. All updates and communication are posted on LinkedIn: https://www.linkedin.com/profile/view?id=18898995&trk=nav_responsive_tab_profile Please request a link to be added to my network. Thank you, Paul Mosgovoy

The Battlefield Victor report showed that Randgold Resources Limited (GOLD) was the only senior miner that was currently in a bullish configuration.

In addition, the report showed that the price action of GOLD was exhibiting buoyancy vs. the next best selection, Yamana Gold (AUY).

We can see from the chart below, that GOLD did not wait around after the reversal. After the "test" which was previously forecasted, there were six successive gap-higher openings.

GOLD Daily Gaps

Charts by TeleChart

What happens now is our next focus.

From here, GOLD may continue immediately on higher into the top of the trading range at the 80.00 - level.

It may also begin to form a trading range at this point. The increased volume from the Friday session points to the probability of establishing a trading range.

The daily chart below shows two possible scenarios. As always, there are an infinite number of scenarios that can take place. However, markets tend to repeat past actions and therefore, unless the move continues higher from here unabated, the next likely scenario is the establishment of a trading range or some kind of retracement.

GOLD Trading Range

Charts by TeleChart

Our company profile indicates that we are using trading techniques from three masters: Livermore, Wyckoff and Loeb. Some of these techniques are over one-hundred years old. From our entries and the subsequent chart action, it appears that using their method(s) have proven to be quite useful in the analysis of GOLD.

Disclosure: I am long GOLD.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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