DRD Long TradeDRD has been doing well since last year July volatility is up and the retraction of 30 %
was predicted after the over bought positions to R28 was achieved how far will we go this time round back to R28 or beyond?
DRD trade ideas
DRD: Time for a PullbackPrice for DRD is stretched, on the daily cycle price is seeking a cycle high before beginning descent. Looking at the weekly cycle, one might construe that the share is in a new weekly cycle although this can turn out to be week 29 of a continuation of a cycle that began on 28 September 2022. Week 29 coincidentally also features as a weekly high before price descends into weekly low. The breakout of the broadening wedge will likely turn out to be a false breakout.
DRD LongDRD the last time we made a new all time Hi in the gold price
DRD was at R 29.72 we just made a new All Time Hi and the share is nowhere near
last time round . for a company that has no debt DRD is undervalued and trading
at a huge discount so am still bullish on this stock?
i would like to see more updated stock and company info from management
as to where they stand and what is in store for 2023
DRD to benefit from gold uptrendDRDGOLD Limited, a gold mining company, engages in the surface gold tailings retreatment business in South Africa. The company is involved in the exploration, extraction, processing, and smelting activities. It recovers gold from surface tailings in the Witwatersrand basin in Gauteng province. The company was incorporated in 1895 and is headquartered in Johannesburg, South Africa.
Fundamentals:
Profitable company - positive
Operating cashflow - positive
Gold uptrend
Technical:
Trade volume high since March 2023
Resistance target 17.72 is June 2020 high
Trending above 50,200 DMA
Positive directional movement
Risk reward 2.23
Stoploss 9.54
$JSEDRD - DRD Gold: I Count Five Waves Up, Top ImminentThe last coverage of DRD was on the 17th of January 2023 and I forecasted a pullback for wave (iv) before wave (v) takes off to complete the impulse move from 864.
The share has not disappointed, driven by the recent surge in the gold price.
Wave (v) in commodities can be extended but there is no way of telling in advance if it will be.
The share has strong momentum with shallow intraday pullbacks.
There are no signs of a reversal yet but I am not an advocate of trying to buy within wave (v) at a mature stage.
Commodities are highly cyclical and can reverse violently so if you are not already in a profitable trade, rather sit on your hands and wait for short opportunities after the completion of wave (v).
DRD - FakeoutDRD was looking good - bull flag breakout and well on its way - until it proved to be a fakeout! Will now look to pick it up either at the bottom of the flag range (around 12.65), or will look for another breakout attempt with a target of 15.70. Although Gold price is struggling, ZAR is still very weak which could help.
DRD Waiting on Gold Confirming of a LowDRD has broken out of a giant falling wedge. It is now in a zone that is good for accumulation. I expect price to move towards the upper line of the wedge & break-out. The macro-economic environment is increasingly favouring gold to outperform general stocks. Ideally one to trade & take profit above gain of 30%.
DRD showing mixed signals with bullish bias - Target R15.00Uptrend channel is continuing for DRD Gold
Price >200MA - Bullish
21 >7 - Bearish
RSI = 50 bearish divergence.
Target R15.00
Fundamentals:
DRDGOLD, a company, is getting ready to release its results for the last six months of 2022. They are telling shareholders that they think their earnings per share and headline earnings per share will be between 59.5 cents and 68.1 cents per share, which is an increase of 2.6% to 17.4% compared to the same period in the previous year. The increase is mainly due to higher revenue, which went up by 6% to R2,654.3 million.
OVERALL:
There are mixed signals between technicals and fundamentals, but with the upward channel still intact, my bias remains more bullish.
DRD: double top pattern?A bearish trend is applicable and the ideal entry range is around 1410.
Increase the short exposure for a break below 1370.
Stop-loss is set at 1460.
The profit target is set at 1330, which is the objective of the double top pattern.
Remains a risky trade.
DRD target reached at R14.12 next stop R17.63Target 1 Reached at R14.12 from the previous analysis.
Now there is a Rectangle formation and on the bigger side of things a Larger Rounding Bottom.
We just need to wait for the breakout.
7>21>200 - BULLISH (Green background)
RSI >50 - Green
New target R17.63
GENERAL INFO
DRDGOLD (Founded in 1895 in JHB) is the largest producer of surface gold tailings in the world.
The company operates two gold plants, the Ergo plant, and the Far West Gold Recoveries (FWGR) plant, which process gold from surface tailings. The company's main products are gold and uranium.
Its main operations are located in the Witwatersrand Basin, which has been the site of some of the world's largest gold mines.
What's great is DRDGOLD has implemented a number of initiatives to minimize its environmental impact, such as the use of cyanide-free technology.
DRD GoldDRD seem to be flagging for another leg higher. A successful break of that 'bull flag' could target 16.50.
$JSEDRD - DRD Gold: Don't Chase The MomentumFrom the 28 September 2022 low of 864 zac, DRD has rallied almost 80%.
The share does seem to be tracing out an impulse move with wave (iii) still intact but overly extended relative to wave (i).
At this juncture, it is not wise to buy in hope of further upside.
If the impulse outlook is correct, we can expect a correction or consolidation for wave (iv) before the uptrend resumes.
DRD Gold perfect for the picking to R14.12Cup and Handle has formed on DRD and is looking pretty good.
There has been a retracement where it will be testing the uptrend as well as the Brim level on the Cup...
Also Moving Averages have crossed up with 7>21>200
Fundamentally, I am bullish on gold in the medium to long term. Despite the interest rate hikes, the chart is neglecting them and is showing the price wants to trend up.
Mostly because investors are losing their faith and trust in crypto and they'll be investing in safe havens like gold. If you see here the chart is screaming a buy...
Target R14.12
DRD - Breaks out from falling wedgeInterestingly, and quietly, DRD has broken out from a bullish falling wedge. I am a little sceptical on Gold still but will be interesting to see where this goes. One could take a punt for a long to about 15.40 -45, with a stop loss on a close below 11.65.
DRD GoldThe 200dma is out of the way on DRD. Buyers currently trying to clear the 1200c resistance area.
Should we get through that, 1400-1500c will be back in focus!
DRD | Going Up as GoldDRD Gold shares are inclined upward, and the move may equal the previous high.
DRD GoldSpeculative trading opportunity. Potential change of trend with the price attempting to clear the descending channel (bull flag). Preferred accumulation at current levels or lower.
TRADING LEVELS:
Entry: 957
Target: 1055
Stop-loss: 912
For more research, including trading ideas, get in touch today.
DRDGOLD - Double BottomDRDGOLD has formed a decent double bottom pattern off the R8.60 lows
- A daily close above R9.70 triggers the long trade
- Initial target is R10.85 but the stock has alot more room to move if Gold continues to catch a bid from here
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
DRD Finding resistance on breakout levelDRD
has run into resistance
waiting for the CPI Data to come out before confirming Trend .
DRD Hit Turning PointDRD Possible Hit Bottom 21 July
trend changed to long
I Recommend waiting for parallel channel accumulation breakout ?
and confirmation
DRD: upside potentialA change in trend direction occurred when the MACD crossed bullish.
A bullish stance is applicable above 1360.
Crossing below this level will negate the bullish stance.
Upside price momentum supports the bullish trend.
Remains a risky trade.
