Anglogold Ashanti Rises 3.14% Amid Bullish Technicals And Overbought Signals

Anglogold Ashanti (AU) concluded the latest trading session with a 3.14% gain, closing at 59.77. This advance occurred within the context of a broader technical landscape showing both strength and potential near-term caution.
Candlestick Theory
Recent candlestick activity reveals a bullish reversal pattern. The 2025-09-04 session formed a bearish candle closing near lows (57.95), but was followed by a robust 3.14% white candle on 2025-09-05 that recovered prior losses and closed near the day’s peak (59.77). This suggests rejection of lower prices near the 56.68 support level established on 2025-09-04. Key resistance now resides at 60.375 (the year-to-date high from the same session), while secondary support lies at 54.41–55.20 (August’s consolidation zone).
Moving Average Theory
The moving average structure confirms a bullish trend. The 50-day, 100-day, and 200-day MAs are aligned in ascending order, with the price trading well above all three. This configuration signals sustained upside momentum, particularly as the 50-day MA has remained above the 200-day MA since mid-2025 (a golden cross), reinforcing long-term bullish sentiment. Any pullback toward the 50-day MA (~54.80) would represent a potential buying opportunity within the uptrend.
MACD & KDJ Indicators
The MACD histogram remains positive but shows narrowing momentum, suggesting consolidation. Meanwhile, the KDJ oscillator presents a cautionary signal: The %K line (89.8) has surged into overbought territory (>80), reflecting stretched short-term momentum after the recent advance. While not yet indicating an immediate reversal, this divergence implies waning upside energy. A bearish KDJ crossover (%K falling below %D) would warrant close monitoring for profit-taking pressure.
Bollinger Bands
Volatility is expanding as price tests the upper Bollinger Band (~60.20), which aligns with the 60.375 resistance. This breakout attempt is technically constructive but requires volume confirmation (discussed below). A sustained close above the upper band would signal extreme bullish momentum, though historically, such moves often precede short-term consolidation. Bandwidth contraction in late August provided the setup for the current expansion phase.
Volume-Price Relationship
Volume trends present a minor concern. The 3.14% advance on 2025-09-05 occurred on 3.21M shares—lower than the prior day’s 4.41M shares during the decline. This divergence suggests less conviction behind the breakout attempt compared to selling pressure. However, above-average volume accompanied key upside moves in early August (6.19% on 5.78M shares) and late July (9.04% on 3.5M shares), validating the broader uptrend’s foundation.
Relative Strength Index (RSI)
The 14-day RSI reads 73.2, entering overbought territory (>70). While not an outright reversal signal in strong trends, it corroborates KDJ’s warning of near-term exhaustion. Historically, RSI values above 70 have preceded brief pullbacks during this rally (e.g., early August). Traders should watch for bearish divergence (price making higher highs amid flat/declining RSI) to signal fading momentum.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from May’s low of 40.45 to September’s 60.375 high, key retracement levels are 50.41 (50%), 48.06 (38.2%), and 45.15 (23.6%). The price remains well above these, confirming trend strength. Shorter-term retracement from the 60.375 high to 56.68 low shows resistance near the 61.8% level at 58.96, which was convincingly breached on 2025-09-05—adding credibility to the breakout.
Confluence and Divergence Points
Confluence appears at 60.00–60.38, where Bollinger Band resistance, the yearly high, and psychological resistance converge. A decisive close above this zone would open significant additional upside. Conversely, bearish divergence exists between the new price high and the KDJ/RSI overbought readings, suggesting near-term consolidation risk. Volume divergence on the breakout attempt further reinforces this caution. Should the price hold above the 58.96 Fibonacci level, it would reinforce the bullish structure despite overbought oscillators.