RRL Price Action

Below is a weekly chart of Regis Resources Ltd (RRL). SP had an awesome 4% rally today hitting a 2 1/2 year high of $3.25 before settling at $3.19.

There was a recently a bullish signal when PA had a breakout above $2.86 - $2.93 resistance area with conviction. SP is trading above both the 50w and 200w sma's which is bullish. Currently sitting on up-trend resistance of a bullish channel and within the $3.17 - $3.21 horizontal resistance area after strongly bouncing off $2.17 at the 23.6Fib retracement at the start of Q2. Possible support at $2.86 - $2.93 near the 38.2Fib may be tested over coming weeks.

MACD had a bullish up-cross during early-3Q15 with an expanding +ve histogram. MACD bullish momentum had since stalled during 4Q15 and 1Q16, however from the start of Q2 has showed bullish signs with a MACD bullish up-cross with expanding +ve histogram due to the recent PA. This is a bullish signal too.

Stochastics bullish higher lows have been formed >20 during 3Q15 before %K entered the bullish continuation region during 4Q. Stochastics had recently become overbought but has since been making an attempt to re-enter the bullish continuation region. As indicated in the chart, similar conditions occurred during 2Q12 before the SP added over 30% by the end of 3Q12. As stated above, SP has had a breakout above recent highs with conviction which should go a long way to pushing stochastics back in the bullish continuation region. This too is a bullish signal however altogether, a very bullish signal.

The ideal time to have purchased RRL would have been during late-3Q15 when the SP broke above resistance at $1.54 - $1.58 after the MACD and Stochastics gave their bullish signals during 3Q. More recently with the moves and positioning of momentum oscillators - once the SP broke above $2.86 - $2.93 resistance with conviction - this was a reconfirmation of the earlier 3Q bullish signals.

IMO bullish over the next 6 - 12mths. DYOR.