RANDGOLD RESOURCES : Strong downward movement
Entry price | Target | Stop-loss | Potential |
---|
GBX 3,756 |
GBX 3,250 |
GBX 3,910 |
+13.47% |
---|
Due to the strong bearish trend, the target price is fixed at GBp 3250 for Randgold Resources Limited.
From a fundamental viewpoint, the group is in a bad financial situation. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence. The valuation level is also relatively high with a P/E ratio at 21.84 for 2013.
From a technical viewpoint, prices are in a downward trend on all time scales. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. The breakout of the GBp 3751 support will be a strong bearish signal to continue the decrease toward the GBp 3250 support.
Investors could take a short position in Randgold Resources at the crossing of the GBp 3751 to target GBp 3250. A stop loss should be set above the 20-day moving average around GBp 3875, level that would invalidate our bearish strategy.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.