RGLD has under performed its peers and the gold miners since August. Going strictly by the charts and assuming that any fundamental changes within the company’s structure have not compromised its status as a ‘quality’ gold stock (this is where you need to do your due diligence as we are just charting here) it sets up an interesting situation, assuming that the gold sector is on its way to the equivalent of HUI 150’s. That is two assumptions already built into this update.
Nominal RGLD is just breaking out of a trend line today after testing support yesterday and if the sector is going to its respective SMA 200’s (HUI’s SMA 200 is currently 154 and gently declining) RGLD’s equivalent represents some pretty good upside if it decides to play catch up with the sector.
Buy Target: 50 to current level
Sell Target: 60 or anywhere below that profit is deemed acceptable
Stop Loss: A failure of support (below 48)
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.