TECHNICAL ANALYSIS: DRDGold shares show pullback in an uptrend | Fin24
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TECHNICAL ANALYSIS: DRDGold shares show pullback in an uptrend

Sep 16 2019 11:16
Colin Abrams

DRDGold has been leading the local gold shares higher in recent weeks and months. The gold sector is currently giving a short-term pullback, and this is setting up another buying opportunity in gold shares, such as DRDGold.

DRDGOLD (DRD): A pullback in an uptrend.

Broad recommendation: Buy on this pullback.

Current trend: Short-term down. Med- and long-term up.

Strategy: Look to buy from the R5.50 level.  

Chart setup: DRD triggered its initial buy when it broke out above line 2 a few months back: it has exceeded its first target from channel 1-2 and still has higher to go.

• Its Elliot Wave count (roman numerals), shows it in a Wave-iv correction right now, with another large rally (Wave-v up) to come. (Elliot Wave analysis postulates five waves in the direction of the trend).

• Its weekly Stochastic (on top) is relatively overbought, and can still pull back more before the price is ready to go again.

(Daily chart)

chart new sharpen

Strategy details: Look to buy it again on a pullback to/near the R5.50 level. (I like it see a reversal day/candle up in that area to enter).  

Target: After the pullback, a rally to the R10 level to start taking trading profits. Note, long-term resistance is line 4 at R12.62. 

Stop-loss: A weekly (i.e. Friday) close below R5.00.  

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to

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drdgold  |  commodities  |  gold  |  markets


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