Gold Fields & the possible Golden Cross

After the recent break of the diagonal resistance line, which developed since August's highs, we now find Gold Fields (GFI's) in extreme overbought according to its 14-day RSI. There is a BIG BUT, however. GFI's 50-day moving average (EMA) is getting very close to breaking above the 200-day EMA...a Golden Cross. This could create further bullishness in the share price, with a break and close above May's high's (+/- R175), most probably putting the R200 levels again back in reach.

As mentioned GFI is finding itself in overbought territory and could see some interim profit-taking. Should we have some profit-taking, the 50-day EMA (+/- R141) will be critical. A break and close below these levels could see GFI test lower lows again, while a bounce off the support line should reaffirm the change in trend.

The consensus target price (Refinitv Eikon) on GFI is currently R163.44/share, below the current market levels. This concurs that we might have some interim profit-taking. My short-term target on GFI is R200, with a possible better entry point than current levels. My longer-term target is still quite a bit north of R200.