Resolute Mining Limited (ASX:RSG) Trading Outlook

Resolute Mining Limited (ASX:RSG) Trading Outlook

Resolute Mining Limited (ASX:RSG) Trading Outlook

HEFFX Notes

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 2.17.

The projected lower bound is: 1.74.

The projected closing price is: 1.96.

RESOLUTE FPO closed up 0.270 at 1.935. Volume was 165% above average (trending) and Bollinger Bands were 20% wider than normal.

Open High Low Close Volume___
1.750 2.100 1.750 1.935 11,294,142

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.55 1.28 0.69
Volatility: 108 106 99
Volume: 5,197,679 4,930,340 3,211,135

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

RESOLUTE FPO gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

RESOLUTE FPO is currently 181.0% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of RSG.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on RSG.AX and have had this outlook for the last 2 periods. Our momentum oscillator is currently indicating that RSG.AX is currently in an overbought condition.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.9445. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 76.02. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 25 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 351.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 23 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 9 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Resolute Mining Limited (RML) is an Australia-based company engaged in gold mining, and prospecting and exploration for minerals. The Company operates in three segments: Ravenswood, Syama and Bibiani. The Ravenswood gold mine is located approximately 90 kilometers south-west of Townsville and approximately 60 kilometers east of Charters Towers in north-east Queensland. The Syama Gold Project is located in the south of Mali, West Africa approximately 30 kilometers from the Cote d’Ivoire border and approximately 300 kilometers southeast of the capital Bamako. The Company’s Bibiani gold project is located in Ghana, Africa. Ore for the Ravenswood Operations is primarily sourced from the Mt Wright underground mine plus an amount of remnant low grade stocks from various sources. Ore for the Syama Operations is sourced from the Syama open pit. Its subsidiaries include Carpentaria Gold Pty Ltd, Resolute (Bibiani) Limited, Resolute (CDI Holdings) Limited and Resolute Exploration SARL.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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