LGL 0.00% $4.48 lihir gold limited.

time for caution

  1. 239 Posts.
    Lihr has had a great run and I'm sure that this level will seem unbelievably cheap in the not too distant future, but I think it may be time for a little caution.

    Bearish divergence on the RSI for some time now, rising wedge on the daily chart and top of the trend channel on the weekly.

    If gold continues upward, this may negate these concerns. However, gold has been within spitting distance of its all time high, has risen ten out of the last eleven weeks, is extended on a range of indicators, and sentiment and coverage has turned decidedly positive. A general stockmarket correction would provide leverage liquidation and a good opportunity for commercial shorts to push the price as low as they can.
    In this situation, Lihr's position as mentioned above could cause it to be particularly hit.

    Something to consider...
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