DRD though under pressure still looks bullishDRD gold even though the gold price is adding some pressure into the DRD, DRD still looks good nonetheless. We'll see in time if will start to run
DRD trade ideas
DRD longDRD Cup And Handle Forming
timing on this Trade Pattern is perfect?
earnings Season could not ask for a better start
Double top signaled start of Cup
DRD - 1D - DRD GOLD - NICE RETRACE - NOT FOR THE NERVOUSLow cost mining venture linked to my prediction of a weaker rand. Stochastics entering over sold territory. ATR buy signal. Breaking of triangle pattern to the top on weekly chart.
DRD Long ContinuationDRD Flag Pattern with Elliot wave indicator
5 wave will be a longer wave as the third wave was short
triangle indicating upside movement continuation.
DRD Gold Limited long due to gold rally 2021The world is printing money. So gold may have a great bullrun 2021 ahead. Gold mining juniors will profit and a company with healthy fundamental numbers is South African DRD Gold limited, traded at NYSE.
$DRD pennant breaking downtrendDRD is forming a pennant after breaking above the downtrend line from July 2020. I have applied the same downtrend angle to include the 2 failed breakouts. In both of the failed breakouts, the price only stayed outside the 'main' downtrend for 2 days. Currently the stock has closed outside the main downtrend for 12 days and has formed a pennant in the process. This breakout and pennant formation has come after the stock tested the $10 level which was stiff resistance before a fast move higher back in June 2020.
Conclusion: DRD has turned $10 resistance into support, has broken the July downtrend and denied prior failed breakouts by holding above the downtrend for > 2 days and forming a pennant in the process. I really like this price action, my opinion is DRD is currently one of the best technical situations the gold sector has to offer.
DRD LongDRD expected production for the Quarter up 45%
what does that say for the stock price?
oversold is the likely scenario...
I am still long on this Trade.
DRD Gold analysis DRD seems to have survived the sub R15 price range, showing a decent spike increase in share price. Unfortunately it wasn’t enough to take them above the downtrend and overall still on a negative trajectory. As it is resting on the downtrend line we will wait to see if it manages to break through (comfortably) signaling a change in trend or like many time before, rebound and continue a downward spiral towards the R15 support line. The coming week will be very interesting in the JSE.
DRD GOLD 1W - LAST DIPProduction up 45%, Consolidation almost over, i also believe that the rand will start weakening again. Expect further pullback to the closure of the gap, and maybe a bit further to the bottom of the trendline. This will be a good time to buy with maybe a short stop loss if you are into that kind of trading. Stochastics are almost all on oversold levels.
DRD Analysis The DRD dive continues, managing to break R15.00 support like is quite concerning at this point as the overall downtrend resistance still stands. R15 was a major support as some can argue this is where the rally started before for DRD. Gold hopefuls can see this as a good buy in point but by the way things look, it seems the downtrend will continue for most gold stocks.
Bear on DRDRSI shows that the share is overpriced and not in line with the Gold price.
Due for market reaction.
Bullish on DRDGold spot rate is at lows recovering slightly,
DRD is testing strong support line (pink) at 1410,
RSI suggests that the share is oversold,
Buy opportunity.
DRD - Hammer on Daily (Possible long) On Daily chart a Hammer formed on Friday Nov 20th.
TRADE OBSERVATION (Short term - warning it is countertrend)
Firstly - Monday (Nov 23rd) price must trade below Friday's close < 1664
Secondly - After trading below 1664, price must trade through/above 1664 before long entry is initiated.
Entry only valid once 1 & 2 materialized.
Entry > 1665
Stop < 1611 i.e Friday's low (preferably < 1600 to allow wiggle room)
1st Target around 1750 - monitor price movement before deciding to exit or hold
2nd Target around 1850 - monitor price
MORE RISKY TRADE
Buy Monday's open with stop < 1600
GOLD PRICE
Currently the Gold price is moving sideways & must remain > 1845 or gold producers' share prices will move lower
If Gold gets a bounce upwards, the DRD trade could convert into a longer term trade
DRD Gold Analysis The dive continues as we see DRD share price still below the downtrend resistance and quickly approaching the R15 support line. We could possibly see a rebound at this point but big enough chances can also lead the support line to fail and we see lower lows.
Bitcoin and other crypto currency’s seem to be taking an opposite reaction to gold price rally and possibly when the Bitcoin price drops we will see the opposite for gold.
For now lets take a pause and wait to see what happens at support.
What to do with DRD...Looks like there are a few things happening with DRD...
Gold Price Support at $1840-$1860 seem to be holding, which would be a buy for me at these levels with a stop loss if it breaks, but DRD itself:
Possible Head and shoulders
Gap 1344-1444
Possible Double top to tests near gap
Downward channel from Jul20/Aug20
And Stochastic oversold
Not sure which direction, but I like current levels as a possible trade entry point - curious about a long Straddle option strategy if possible?
Any good options brokers to recommend?
I'd appreciate your opinion on the above - Thanks in advance
The above is just my opinion/observation and a question, not a recommendation.
Falling wedge on DRD, testing supportDRD is looking to be the R16 support. After gold respected its support DRD might also respect its support. I'm looking for a break above the R20. I believe that will happen if Gold breaks the $1930 resistance level
DRD Gold Analysis This is almost reminiscent of the bitcoin crash a few years ago. Gold prices seem to be slumping possibly because people are dumping gold in favour of the Bitcoin rally we are having right now. DRD Gold seems to be strongly marching towards the R15 support line and a break through this line could spell trouble for the short term. Especially for the unlucky souls that perhaps bought in at premium peak levels. Mining stocks as we know are always riskier that your general stocks so this shouldn’t be surprising for regular mining investors. Since share price is heavily reliant on gold price one would need to analyze the gold charts in parallel to possibly map out possible movements of mining Companies.
For now since DRD is diligently respecting the downtrend, there is a strong possibility we will see the 15 price point reached.
A falling wedge continuationWe have a nice falling wedge continuation pattern on DRD. This fuel to the fire could be added by a gold rally. Since gold looks to be breaking the $2060 resistance level
DRD Gold Analysis A rise and fall from grace? It depends on your patience. DRD Gold struggles to maintain a share price above R 20 as it has slowly entered a down trend. Seems the gold rush has slowed which is ironic. Some say Gold and bitcoin have a like for like movement pattern but as Bitcoin has gone up, Gold has gone down. Direct effect on this stock of course. Overall gold as a commodity is still looking healthy despite the August - November slump. Possibly when the gold price goes up we can expect the same with gold mining company share price and if the opposite happens, the same rule applies. Long term share holders shouldn’t be worried but i wouldnt be too comfortable either as we know this industry if one of the most volatile. Trade safe.
