Is This Gold Fields Limited (GFI)’s Unjustifiable Rally?

The stock of Gold Fields Limited (NYSE:GFI) has been Downgraded to Sector Perform from Outperform by RBC Capital Mkts in its latest research note that was published on June 26. JP Morgan analysts have downgraded their rating of GFI stock from Overweight to Neutral in a separate flash note to investors on February 21. Analysts at Morgan Stanley downgraded the stock to a Underweight call from its previous Equal-Weight stance, in a research note that dated back to January 31.

Gold’s stock is covered by 4 analysts, with none of them rating the stock as Buy. It has been deemed to have strong buy by 1 of the analysts, 2 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only none analysts. 1 of them rated it as strong buy with 2 of them recommended investors to Hold on to the stock. Meanwhile, 1 analyst(s) rated it as a sell. The above data shows that GFI has an average analyst rating of 3.00.

Gold Fields Limited, which has current market capitalization of above $5 Billion, published its last quarter earnings on June 30, 2019. The company was able to amass $-0.02 million in revenue. This figure is $0.05 million more than what analysts had expected which was $0.03 million.

GFI surged by $0.17 during the normal trading session on Tuesday and reaching a high of $6.07 during the day while it closed the day at $5.73. The Gold stock had a high trading volume of 14.81 million shares on that day, which is high compared to the average daily volume of 8.15M shares. GFI has also lost 4.50% of its value over the past 7 days. However, the stock has surged by 51.19% in the 3 months of the year. Over the past six months meanwhile, it has gained 51.59% while it has added 62.78% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -8.9% from its 3 months high price. However, taking another look at GFI will indicate that it is trading +60.5% away from its 90-day low. Looking at the bigger picture, the Gold Fields Limited stock has dropped by -8.9% from its 52-week high while it has surged by +160.45% from its 52-week low price.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 62.17%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 58.53%. Over the past 20 days, Gold’s Stochastic %K stood at 72.11% while its Stochastic %D was revealed to be 79.85%.