The share recently had to give up important support and then came under pressure.
The US streaming and royalty company Royal Gold will report its financial results for the fourth quarter of 2023 and therefore for the full year 2023 next Wednesday (February 14). Given the current situation, there should be no disappointments with the numbers. The share recently had to give up important support and then came under pressure.
Review. We titled our last comment on Royal Gold on January 31st with “Now it applies!”. At that time it was said, among other things „[…] The stock has moved sideways in recent weeks. The limits at $125 on the upside and $115 on the downside proved to be “reliable”. However, the focus is currently on the bottom of this range. And that might bring beads of sweat to some people’s foreheads. The task is clearly defined from a chart perspective: Royal Gold should avoid trips below $115 as much as possible. If this does happen, you should be careful. In this case, there could be further drops towards $107 or $105. Looking on the upside, a breakout above $125 would give the stock upside potential towards $130+. […]“.
The chart picture deteriorated further in the last few trading days. The current situation is taking its toll. It’s not just producer stocks that are suffering from falling gold and silver prices. The streaming and royalty companies cannot escape the developments either.
Royal Gold recently fell below the crucial support of $115. Because of the relevance of this zone, its loss hurts. The medium-term upward trend (shown in red) is now a thing of the past. At the same time, the 200-day line is pushing from above. From a chart perspective, the whole thing doesn’t look particularly promising. Hopes now rest on the $107/$105 zone. The striking low from the beginning of October 2023, which was then formed at $102, could also be approached again.
The numbers on February 14th must be convincing. The conference call will take place one day later – on February 15th.
In short. The air is out. The correction in gold and silver is having a negative impact. The chart picture continued to deteriorate. Now Royal Gold must at least defend its striking October low. A pullback below $102 would require a revaluation. In the best case scenario, there will be positive impulses from the upcoming quarterly figures… The key data on sales volumes etc. in the 4th quarter presented at the beginning of January were certainly received favorably…
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