Top5 oversold/overbought according to RSI & GoldfieldsEnd of week 31May19. Most of the companies finding itself in the top oversold list are there for good reason and would I caution all “bottom-pickers” to be very careful buying into these companies. FTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow:
Oversold:
Clover 15
Brait 18
Tongaat 21
Glencore 23
RDI Reit 23
Overbought:
Allied Electronics 80
Gold Fields 78
Cartrack 74
Fortress B 70
AngloGold Ashanti 69
Spending some time on Gold Fields . You know the world is becoming increasingly worried/pessimistic, when you see these kind of “towers” happening in gold companies. The US also back into “Extreme Fear” territory according to the CNN Fear & Greed Index ( money.cnn.com ) – first time since the big drop in US markets end of last year.
Gold Fields made similar movements when US dropped end of last year, which tells us that a pattern is developing.
Gold Field however broke a very strong resistance level on Friday; one that has never been breached since November 2016. Although the share price is finding itself in extreme overbought circumstances (according to 14-day RSI and relative price movement against FTSE/JSE All Share), do find itself in a whole new trendline, with any further “Fear” growing worldwide, could see Gold Fields test the R70-R90 levels traded back in middle 2016.
