Will Randgold Resources turn, or will it continue to rise to 2018 high of 7475p?

• The chart shows the Randgold Resources price action since late October.
• Shares in a monthlong uptrend from 5893p lows; now at 6974p.
• Shares -6% from 2018 highs; +52.4% from 2018 lows; -6% year-to-date.
• Global market turbulence is helping safe-haven gold and precious metals miners like Randgold.
• Randgold Resources is being acquired by Barrick Gold.
• In the last 4 weeks, the shares have risen over 13.5%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Randgold Resources – An Example

Let’s say the trend 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 6974p. To do this, you need £2,000.

Let’s assume Randgold Resources trend continues to 2018 high of 7475p (+7.1%). Your profit would be £710, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Randgold Resources falls 3% and hits your stop-loss. Your loss would be £300.

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