Gold bullion, most mining names and ETFs have made nice rallies in recent weeks. Randgold Resources (GOLD) is one of the names that has appreciated and is poised to work higher. An upgrade from TheStreet.com's quantitative service adds to the positive mix.
In this one-year daily bar chart of GOLD, below, we can see the November/December "turn" for GOLD. Prices made a low in November and slightly lower low in December, but the volume of trading was less on the second low as the bears were "all sold out." Prices reversed in mid-December and have broken above the 50-day moving average line and the slope of the line is now positive. GOLD is testing the 200-day moving average line and could close above it today.
The On-Balance-Volume (OBV) line turned up in December and signals more aggressive buying. The MACD oscillator moved into positive territory in early January and is still pointed up.
In this weekly chart of GOLD, above, we can see that prices are poised to test the 40-week moving average line. The OBV line on this time frame has turned up and the MACD oscillator just gave us a cover-shorts buy signal.
In this Point-and-Figure chart, above, we can see the latest rally and the projected price target of $112. Strategy: Buy GOLD on strength and risk a close below $85 if you are a risk-averse trader.