A couple of days ago I suggested that the worst could be behind...

A couple of days ago I suggested that the worst could be behind us in terms of the SP short term and am looking for us to hold in the 5s-6s until further news arrives.

Early days but it certainly looks as though some base building has begun between 5.5c - 6.3c.
So IMO any purchase around here is a probably a reasonable one in terms of risk. And IF a funding announcement to progress the adit etc. is on the cards then a decision to buy now may prove to be a masterstroke.

However we also need to keep a level head and remember that it's the 'IF' that brought us to this lower point in the first place, and there can be no doubt that it has inflicted some technical damage.

So without any FA to drive the SP higher, the upper 6s might be possible but that would be the full extent of any very short term rally I think.

On the flipside, selling here is also extremely dangerous IMO because if we creep up to say 6.5c and then we receive a positive ann., then we could POP back into the 7s, 8s or even 9s before we'd have a chance to buy back in on any positive news. The lack of decent volume on the sell side would have to be a concern for those waiting on the sidelines for a positive announcement.

Finally, check out the two charts below. The first shows the RSI and stochastics on the daily chart and illustrates that as of now we are in an extreme oversold condition by historical standards.

The second chart compares IDC to the XGD (local gold stock index). Despite the recent fall in the SP, IDC remains a relative outperformer to the local gold stock sector, as has been the case for the last year or so.

Note: my opinion and analysis should not be relied upon nor considered as advice of any kind. Please DYOR.