Given the recent moves within the SIA Asset Class Rank and the volatility in the market, we have scanned the SIA platform for good ideas. Instead of turning to the usual basket of United States SIA reports, we have spent a great deal of time in the SIA International arena. Given the backdrop of relative performance coming from the precious metals sectors, we paid extra attention to names within the SIA International ADR report for gold-related ideas, and voila—Gold Fields Ltd. ADR stood out. Shares of Gold Fields Ltd. (GFI) have recently moved back into the favored zone of the SIA International ADR report in early February, among a plethora of European and Chinese names that continue to dominate the favored zone. The fact that GFI was able to jostle for favored position on its own is no easy feat. In the first chart presented, we have a 3-year point and figure chart scaled at 2%. We see shares of GFI breaking to a new high with its recent double top at $19.83. Here, we find support at the $18.32 and $17.96 levels, with further support at the $16.93 level. Resistance can be extrapolated, based on the point and figure method, to $21.47 and $23.24, based on the breakout past prior consolidation ranges. Other technical takeaways from the chart include the perfect SMAX score of 10 out of 10, which may further support GFI as a reference point of relative strength against other asset classes.
The second chart presented is a very long-term point and figure chart of GFI that displays 25 years of data. This best practice of looking back in time can sometimes serve as a valuable exercise when trying to ascertain any overhead resistance. A chart might look like it has blue skies above, but it could be running into prior sellers eager to finally get rid of the position. However, in this case, we find that shares of GFI may finally be putting old resistance in the rearview mirror, but this remains to be seen. It would be encouraging to see a conviction move through this important level at $18.85, which in the past has been a sticking point for the shares, one where prices eventually retreated as sellers gained control. But this time, at least for now, it appears that shares are challenging this 20 year old resistance level. Time and monitoring this level for buyer conviction may be paramount.
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