ROL has had a great run (and TRF with its 20% stake along with it) since releasing news of its gold drilling results at Romang Island in early December, and benefited from a string of announcements related to this project during that time.
Looking at the chart (sorry I use Bigcharts when IGMarkets doesnt carry the stock I definitely need to spring for proper charting software waiting for my new dedicated trading PC!) price has been tracking nicely along a bullish trendline and well above the 41 day EMA (not surprising given the low base and almost 300% advance since November). Need to bear in mind that bullish trendline is stimulated by a string of positive announcements when they stop it natural to expect price to stop following that trendline and find a new level which will be determined by the valuation of the Romang find (Goldies will know better than me how to value that).
Additionally, a couple of bearish signals have crept into the chart, most notably some divergence on the Stoch, a bearish cross which has just formed on the MACD and weakening in volume suggesting buying pressure is easing off. In the absence of any further positive announcements related to the Romang project I would not be surprised to see this stock take some time to absorb all the project related news and break the bullish trendline in finding a new support level. Time to take a bit of profit off the table?
