Recognia says the share price of Randgold Resources, a gold mining business, could rise from the £4,938 level to between £5,576 and £5,734 over the next month or so – a 16% move upwards.
The LSE-listed share (RRS) has confirmed a Symmetrical Continuation Triangle pattern according to Recognia’s proprietary pattern recognition software. In Recognia’s words: “The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A Symmetrical Continuation Triangle (Bullish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.”
The pattern has formed over 31 days, which Recognia says is roughly the period of time in which the target price range may be achieved.