Randgold Resources Limited reaches a level of resistance. This level could contain the upward trend in the short term.

From a fundamental viewpoint, firstly, we note the high valuation of the company. The P/E ratio for the current year is at 20.93x and expected at 14.09x for next year. With a valuation ratio of 4.94x, the group appears overvalued compared to its business activity. Moreover analysts have sharply downgraded their forecasts for earnings per share.

Graphically, the share is in a period of technical rebound that allowed it to reach the GBp 5490 resistance. This area could stop the short term bullish movement. Furthermore, the rallying of the GBp 4914 support area will be considered for upcoming sessions.

Therefore, the most offensive investor can benefit from the technical configuration to take a short position bellow the 5150 pivot point. The objective will be fixed near to the GBp 4914 support. Only the breakdown of this level would open up new bearish targets toward GBp 3972. The stop loss will be set above GBp 5150.