DRD Gold might look promising

The South African mining company DRD Gold Ltd. was unable to continue the rally directly in October. Instead of manifesting a possible breakout above the $ 5.00 mark, the shares lost in value and even fell temporarily under the support of $ 4.00. Fortunately, only temporary, so that it is currently only an extensive consolidation. More in conclusion.

 

Conclusion

The weakness of the previous month is currently being relativized and the bulls are therefore resisting the previous sell-off. With currently +11.49% gain in December, the bulls are working on a clean floor. A daily close above USD 4.75 could have a stimulating effect, so that price increases up to resistance at USD 5.00 can be expected in the further course. Above this round mark, a further performance boost is possible up to the resistance range of $ 5.40 to $ 6.00. Above USD 6.00, the medium-term path to the price range of USD 8.00 would eventually be paved. However, new losses below the $ 4.00 level should be avoided. In this case, staggered consequential losses of up to USD 3.40 and lower down to around USD 3.00 would be expected. Support has developed there during the summer months, which can currently be assessed as stable. A task of this would accordingly be negative and should initiate further levies up to at least USD 2.40 or up to the range of USD 1.80. The complete recovery since the summer low would therefore be put into perspective and the initial situation would then be much more bearish.