DRD Gold with possibilities of more downside movement?
JSE:DRD tumbled from highs of R29.50 in July 2020 and faced a sell off until it found support around R8.80 and rallied to R25.46.
The high at R25.46 had a bearish reaction at the 76.40% Fib retracement level of the previous bearish phase and price has been painting a falling channel since then. With market gaps below current levels, we may see some more downward movement of the instrument with the closest gaps on the Daily time frame being at R14.50 and R12.30.
Price may find a temporary bounce to the R17.00 ~ R17.60 zone before continuing its journey to the downside to test the R13.00 ~ 13.80 zone, which aligns with the 23.80% where we might find some support to take the instrument higher.
Failure of this zone to support price may see the instrument tumbling to retest the lows around R8.80.
Above bearish sentiments will be off the table if the instrument can close and hold well above R17.80.
The high at R25.46 had a bearish reaction at the 76.40% Fib retracement level of the previous bearish phase and price has been painting a falling channel since then. With market gaps below current levels, we may see some more downward movement of the instrument with the closest gaps on the Daily time frame being at R14.50 and R12.30.
Price may find a temporary bounce to the R17.00 ~ R17.60 zone before continuing its journey to the downside to test the R13.00 ~ 13.80 zone, which aligns with the 23.80% where we might find some support to take the instrument higher.
Failure of this zone to support price may see the instrument tumbling to retest the lows around R8.80.
Above bearish sentiments will be off the table if the instrument can close and hold well above R17.80.