chartist, page-2

I'll have a crack. Here are some ramblings.

The gold sector is getting smashed right now. Even the widely acknowledged fundamentally strong companies are getting slammed (MML, SLR). I wouldn't put RED in the category of these companies. In fact it probably falls right into the bottom drawer of producing gold stocks on a fundamental basis.

I feel like there is one last almighty flush coming in gold stocks. RED in my view looks one of the more susceptible given the poor fundamentals and the relatively illiquid nature of the stock.

The previous low at 87 cents looks like it will go in the next couple of days. After that the next logical range appears to be 70-75 cents.

- 70 cents is long term support.
- Outstanding gap to be closed at 75 cents
- 76.4% retracement a possibility (don't place much weight in this but it's amazing how often it shows up).
- Panic downtrend line also in the 75 cent range

If you believe in the fundamentals of RED and of gold it could be an excellent opportunity. I'm more inclined to go to the top of the tree if the flush occurs though.