Wow - RED has become a magnet for panglossian optimists - when I was suggesting a year or 3 ago that RED might get to be a "billion dollar market cap" stock, I was ridiculed up hill and down dale as a " company shill " a " Stock pumper " " a ramper " .... etc etc etc ... now many HC "regular contributors" are suggesting 50c a given, and 100c by years end .... talk about fantasy economics ... whatever ... I'm with Seanshare - I'm selling in the 40's.
Fridays action in NY was extraordinary - the overall market was down, and the US$ POG had a blow-off top - while closing at US$2343, the intraday spike was above 2450 ! The A$POG hit 3750 intraday before closing at 3625 - thus forming a "hanging man" candle which can signal an uptrend reversal "turning point".
Needless to say, anything above 3500 would be much appreciated by Aussie gold miners, even long term POG A$3000 would be great, but the POG may not hold up if the general market has a major correction or "crash".
The market breadth is worryingly low - more that 54% of the Russell 500 stock index is dominated by the top 10 market cap stocks - the widest margin since the peak of the market in 2000, the first "tech bubble" .... market sentiment is bearish because of many geopolitical factors and the FED's more cautious approach to interest rate lowering .... and 70% of US electors don't have confidence in Biden or Trump, and 40% expect the winner of the Presidential election to "die in office" .... meaning either President Kamala or President Marjorie Taylor Green ????
The GDX and GDXJ had been on a bullish rebound, from significant lows, and a trend reversal appeared to be consolidating, till Fridays down day - both were 2%+ negative, on Friday, and it remains to be seen if this is a blip or significant turning point.
Technically, with the gold price at all time highs, with no previous support levels near (previous highs), the fibonacci retracement levels are useful - so immediate (bullish) support is A$3500, and if the 61.8% retracement level (A$3300) doesn't hold, then thats a short term bearish development.
RED daily chart for the past 3 months shows a big volume day on Friday - this could be the short term top ?
Until the RED-SLR merger is confirmed, the SP will fluctuate - it remains to be seen if 40c is a strong support level for RED.
(20min delay)