Royal Gold, Inc. (RGLD)

Royal Gold is a precious metals streams and royalty’s business. Streams are structures where the company purchases rights to buy a portion of a mine’s production via an upfront deposit. Royal Gold has a diverse portfolio of exploration, production, development, and evaluation royalties and streams in geographic areas like Canada, Chile, Mexico, and the US. The company’s prospects are linked to the price of gold. The price has been on an uptick during the last week of March 2021.

The monthly long term chart for Royal Gold shows sideways movement from 2010 to 2015. Since 2016, however, the stock has been on an uptrend within a clear channel. The price broke the bottom of this trend in March 2020 but then swiftly bounced back up in April 2020. The price has recently bounced up from the bottom trendline and an important level at $100, a previous resistance now acting as support. The next target could be $140, while the stop loss for a long position can be placed at around $98.

Position entered into our long-term tracking portfolio today. The entry point is at $111.52 and a stop-loss placed $94.65, which is 16% below the entry point. The short-term to medium take profit at the top of the trend is set at $94.65, giving a profit of 32%.