Will Randgold Resources turn, or will it continue to rise beyond 6,664p?

• The chart shows the last 2  years’ price action for Randgold Resources
• The shares have broken above horizontal resistance at 6595p to trade 6664p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Will the shares rise back to Aug 2017 highs of 8050p highs?
• Shares -22.6% from 2018 highs; +25.5% from 2018 lows; -19.2% year-to-date.
• Randgold Resources is being acquired by Barrick Gold
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Randgold Resources – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Randgold Resources using a CFD, at the current price of 6664p. To do this, you need £2,000.

Let’s assume the Randgold Resources trend continues upwards to 8050p (+20.7%). Your profit would be £2070, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Randgold Resources breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.