Valuation Update - RSG June Quarter and Toro Gold Acquisition, page-17

firstly - thank you for the supportive comments, many times on this site you get shouted down.

You are right, it did bounce off 1.64 today - however I feel that was just filling the gap as it closed yesterday at $1.72. It still closed down on yesterday by 4c and in doing so made its way back to the 38% fib marker.

According to shortman, 48% of volume traded on Monday was shorted....that's massive!!! Don't know what the level is today as the data is not in yet, but over the last week or so the % of shorts has been really high:

	Date	Gross shorts1	Issued capital	% Capital shorted2	Trade volume3	Shorts as % of volume4
1	Mon 19th Aug, 2019	3,912,050	900,888,230	0.43%	8,133,075	48.10%
2	Fri 16th Aug, 2019	3,457,524	900,888,230	0.38%	9,176,652	37.68%
3	Thu 15th Aug, 2019	3,214,607	888,551,851	0.36%	15,049,339	21.36%
4	Wed 14th Aug, 2019	8,648,254	888,551,851	0.97%	17,628,141	49.06%
5	Tue 13th Aug, 2019	7,568,718	888,551,851	0.85%	53,447,289	14.16%
6	Mon 12th Aug, 2019	2,059,954	888,551,851	0.23%	7,413,677	27.79%
7	Fri 9th Aug, 2019	838,089	888,551,851	0.09%	9,036,892	9.27%
8	Thu 8th Aug, 2019	2,535,899	888,551,851	0.28%	14,567,286	17.41%
9	Wed 7th Aug, 2019	3,431,014	888,551,851	0.38%	18,973,727	18.08%

I still think this will continue to fall further, and will find support in the $1.40's - the 61% fibonacci is $1.401.

Bear in mind that the share price drop based on the acquisition of Toro has not really eventuated as yet - the morning it was annouced was also the morning that Trump had sent the gold price soaring with his china tweet. It dropped to $1.58 and then shot straight back up. PoG has stalled for the moment (I think it will keep going up in the medium term though) - which won't help RSG.

I just think this was too hot - it went almost vertical - it had to come back down.