Randgold Resources (RRS): Key support zone towards 7,000p

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Randgold Resources (RRS): Key support zone towards 7,000p

It would appear that there are multiple factors affecting mining giant Randgold Resources, over and above it being the FTSE 100’s favourite gold price proxy. Indeed, one of the highlights of the stock market the morning after the Brexit Referendum vote on June 24 was the rocketing price of Randgold Resources shares.

Thankfully, for the bulls at least, we have not seen a complete reversal of the post-June move higher, with the market licking its wounds after the High Court reversal. Indeed, the focus has been on the latest Q3 update. Here it was interesting that despite the company having maintained its profits guidance, and even serving up a 32% profits increase, there were no real fireworks in terms of the share price. This may be because investors are not exactly rushing to buy anything given the proximity of the US election, but it may also be that most think that Randgold Resources shares have travelled too far and too fast.

The message though, is that despite disappointing price action over the past month, while there is no end of day close back below the 200 day moving average at 7.018p, the upside here should be as high as the September resistance zone at 8,000p by the end of this month. Any dips towards 7,000p can be regarded as buying opportunities.


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