Anglogold Ashanti Plunges 6.75% As Bearish Signals Converge Near Key Resistance

Technical Analysis of Anglogold Ashanti
Anglogold Ashanti closed at $72.26 in its latest session, declining 6.75% with a trading range of $70.91–$77.80. This analysis integrates multiple technical frameworks to assess current positioning and forward probabilities.
Candlestick Theory
The October 9 session formed a bearish engulfing pattern after a long green candle on October 8 (high: $77.71, close: $77.49). This suggests exhaustion near the $77.80 resistance, which has capped prices twice in three sessions. Immediate support resides near $70.90–$71.20, where multiple intraday reversals occurred in early October. A sustained break below this zone could extend declines toward the $67.50 psychological support.
Moving Average Theory
The 50-day MA ($64.20) remains above the 100-day ($58.75) and 200-day ($48.90), confirming the primary uptrend. However, the recent close ($72.26) testing the 5-day MA ($73.40) signals near-term fatigue. A bearish crossover between the 5-day and 20-day MAs may develop if prices hold below $72.50, increasing downside vulnerability toward the 50-day MA.
MACD & KDJ Indicators
MACD shows a bearish convergence (signal line crossing below histogram) on the daily chart, while weekly MACD retains a positive slope. The daily KDJ (K: 35, D: 52, J: 12) indicates oversold conditions, diverging from price as October’s high ($77.80) exceeded September’s peak ($74.93) but KDJ failed to reach overbought territory. This negative divergence suggests waning momentum.
Bollinger Bands
Volatility expanded as prices breached the upper band at $77.80 on October 9, triggering a sharp rejection. The 20-day band width has widened 18% this week, typical of potential reversal zones. A contraction below the midline ($68.40) could signal bearish continuation.
Volume-Price Relationship
The sell-off on October 9 occurred on elevated volume (4.04M shares vs. 30-day avg: 2.93M), confirming bearish conviction. By contrast, the October 8 rally showed muted volume (2.47M shares), lacking confirmation. Volume patterns validate resistance near $77.80 while warning that $71.00 support requires higher buying volume to hold.
Relative Strength Index (RSI)
The 14-day RSI (56) retreated from near-overbought conditions (69 on October 8) but holds above neutral territory. This mid-range reading allows directional flexibility. A break below 45 would signal strengthening bearish momentum, though oversold conditions (RSI<30) remain distant.
Fibonacci Retracement
Using the swing low of $22.45 (December 2024) and high of $77.80 (October 2025), key retracement levels cluster at $63.00 (23.6%), $57.20 (38.2%), and $50.12 (50%). The current pullback from $77.80 finds initial support at the 23.6% level ($63.00). Consecutive closes below this zone could trigger accelerated selling toward $57.20.
Confluence & Divergences
Confluence exists between Fibonacci ($63.00) and the 50-day MA ($64.20), creating a high-probability support zone. Volume divergence between the October 8 rally (low volume) and October 9 decline (high volume) reinforces resistance near $77.80. The bearish KDJ divergence and MACD signal-line crossover suggest near-term consolidation or correction outweigh immediate bullish potential.
Probabilistically, Anglogold Ashanti faces stronger headwinds below $73.00, with critical support at $70.90–$71.20. Failure to defend this level may trigger a 6–8% correction toward the $63.00–$64.20 confluence area. Re-entry above $75.50 would invalidate the bearish structure and re-target the $77.80 resistance.