The dominant event and charting highlight of the recent past as far as Central Rand Gold on its daily chart remains the as yet unfilled gap to the upside in November, through the 50 day moving average. Such 50 day line gaps tend to be the kick starter for many a rally in small caps and beyond, and for this stock this has proven to be the case. Of course, the subsequent spike from below 10p to over 40p in a single session last November was a significant event, so significant in magnitude that the shares have been effectively consolidating ever since. The name of the game as far as technical traders now will be to ascertain exactly when this consolidation period will end, and when there will be a partial or even full retest of the best levels of last year. This is of particular importance given the way that there are some who are currently speculating that after over three years in the wilderness Gold is finally set for a lasting comeback.
Getting back to Central Rand Gold we have the prospect of a push to the top of a rising trend channel from November at 30p over the next 1-2 months, given the way that the 200 day moving average now at 12.09p has been rising for March. Only a weekly close back below this would delay such a scenario.
