Again, Gold Fields finds itself at a crossroad. The trading update from the company this morning looked positive, and we maintain our buy recommendation on the GFI. See our recent report: http://oldoak.co.za/wp/index.php/2020/07/03/get-to-know-your-jse-companies-gold-fields-limited-jse-gfi/
Technically, the share price still finds itself within the falling wedge pattern, with the bottom support-line being tested for the third time this week. We also see the share price getting dangerously close in breaking below the 200-day Moving Average (EMA). All three the shorter-term EMA’s (8, 21 and 50 day) are pointing downward, which indicated that the trend is not the Gold-bull’s friend currently. I would caution any short-term long position and would rather wait for confirmation that support did hold-up.
Should the support not hold up, we can very much see the share price back at the R127 levels. Should support hold and we see a break and close above R185.44, could very much bring the R200 back into play. I would, however, recommend that all trader rather do nothing for now.
Technically, the share price still finds itself within the falling wedge pattern, with the bottom support-line being tested for the third time this week. We also see the share price getting dangerously close in breaking below the 200-day Moving Average (EMA). All three the shorter-term EMA’s (8, 21 and 50 day) are pointing downward, which indicated that the trend is not the Gold-bull’s friend currently. I would caution any short-term long position and would rather wait for confirmation that support did hold-up.
Should the support not hold up, we can very much see the share price back at the R127 levels. Should support hold and we see a break and close above R185.44, could very much bring the R200 back into play. I would, however, recommend that all trader rather do nothing for now.