Royal Gold Inc. (NASDAQ: RGLD) shares closed lower on Monday Dec 5 with lighter trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at Dundee Securities initiated coverage on Royal Gold Inc. (NASDAQ: RGLD) stock, starting the company at Buy. With a rating of Buy on the stock, Royal Gold Inc. has a 52-week high of $87.74. A number of other analysts have issued reports on the stock recently, and Royal Gold Inc. has secured a consensus one-year price target of $89.92, above the opening price of $70.15. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after initiating coverage,.
Shares of Royal Gold Inc. (NASDAQ: RGLD) opened at $70.15 on Tuesday and has traded in a range between, $69.56 and $70.55, and last traded at $69.75, which represents a dip of $0.97 per share or -1.38% from the previous closing price.
Royal Gold Inc. (NASDAQ: RGLD) now has a market cap of 4.56B.
Royal Gold Inc. (NASDAQ: RGLD) Average Daily Trading Volume
66,009 shares traded hands yesterday, lower than normal, out of a total float 64,753,000. Swing traders often use swings in trading volume to pinpoint heavy volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
However, a single day of heavy buy side trading is not enough to assert a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Royal Gold Inc. (NASDAQ: RGLD) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders can make well planned trades when they track the trading habits of professional investors.
With that in mind, Royal Gold Inc. (NASDAQ: RGLD) now has a 50-day MA of $69.21 and 200-day MA of $72.64. It has traded in a 52-week range between $24.68 – 87.7400 and today’s last price is 20.51%% lower than the 52 week high of $87.74.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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