Agnico Eagle Mines Slumps 4.56% Amid Technical Breakdown Below Key $118 Support

Agnico Eagle Mines (AEM) fell 3.35% in the most recent session, extending losses to 4.56% over two consecutive trading days, with the closing price settling at $117.97. This decline occurred alongside elevated volume of 3.55 million shares, suggesting heightened selling pressure near the $118–$121 resistance zone observed over the preceding week.
Candlestick Theory
Recent candlestick patterns reveal bearish momentum dominance. The June 4–6 sequence formed a bearish evening star pattern: a bullish candle ($123.61 close) was followed by a small-bodied indecision candle and a decisive bearish marubozu closing near its low ($117.97) on heightened volume. This confirms rejection at the $122–$124 resistance area, which aligns with the April 23 swing high ($121.10). Immediate support resides near $116–$117, marked by the May 30 consolidation low and January-March accumulation zone. A sustained break below $116 could trigger extended declines toward $110.
Moving Average Theory
The 50-day and 100-day moving averages exhibit bearish convergence. The latest close ($117.97) sits below both averages, with the 50-day actively descending toward the 100-day – a precursor to potential death-cross formation. More critically, the 200-day moving average near $105 remains in a neutral slope, failing to confirm the long-term uptrend seen in Q1 2025. This configuration signals deteriorating intermediate momentum, though the broader trend remains intact above $105. The $120–$124 zone now acts as dynamic resistance, reinforced by the converging 50/100-day averages.
MACD & KDJ Indicators
MACD metrics show bearish acceleration, with the histogram deepening below its signal line after a sustained negative crossover in late May. This divergence versus the early June price rebound warns of underlying weakness. Meanwhile, KDJ readings present a nuanced picture: While the %K line (14) is oversold at 18, it continues trending downward without bullish hooking, reflecting unresolved selling pressure. The MACD-KDJ divergence – where MACD confirms the downtrend but KDJ nears oversold territory – creates ambiguity but leans bearish given the absence of reversal confirmation.
Bollinger Bands
Volatility expansion is evident through widening Bollinger Bands, triggered by the recent sell-off. Price breached the lower band ($118.50) on June 6, typically indicating oversold conditions. However, the close below the band combined with expanding bandwidth suggests momentum-driven decline rather than exhaustion. Immediate resistance aligns with the middle band (20-day SMA) near $120.50. A mean-reversion bounce would require consolidation above $118.50 and band contraction to signal stabilization.
Volume-Price Relationship
Volume dynamics support bearish continuation. The June 6 sell-off occurred on 12% above-average volume (3.55M shares vs. 3M 30-day avg), validating downside conviction. Notably, the May 12 capitulation event (-9.26% on 7.5M shares) established a high-volume resistance node near $110–$112. Conversely, accumulation volume between $94–$97 (February-March) offers distant support. Current volume profile favors sellers, with resistance-level distribution (e.g., June 2 rally on 4M shares failing to sustain gains).
Relative Strength Index (RSI)
The 14-day RSI at 34 approaches oversold territory but lacks bullish divergence. Its downtrend since the May 29 peak (RSI 62) aligns with the price trajectory, weakening reversal potential. While technically neutral, the indicator’s failure to rebound amid two-week consolidation near $120 signals exhaustion. Traders should note that RSI could linger near 30–40 during sustained downtrends, so oversold readings alone are insufficient reversal signals without volume/price confirmation.
Fibonacci Retracement
Applying Fibonacci to the March 14 ($103.60) to June 4 ($123.61) rally reveals critical levels. The recent decline breached the 38.2% retracement ($117.20), targeting the 50% level ($113.60) – a confluent area with the 200-day moving average and March swing highs. The 61.8% retracement ($110.20) aligns with the May 12 high-volume reversal candle. Given the breakdown below $118, the path of least resistance favors testing $113.60–$110.20. Bullish reversal requires reclaiming the 38.2% level at $117.20 as support.
Confluence and Divergence Observations
Confluence exists at the $116–$117 support zone, where Bollinger Band oversold signals, horizontal price support, and the 38.2% Fibonacci retracement converge. A bounce from this area would align with technical logic. However, bearish confluence dominates the broader outlook: MACD momentum deterioration, volume-confirmed resistance at $121–$124, and the death-cross formation in moving averages all favor downside continuation. The primary divergence – KDJ’s oversold signal against unconfirmed RSI oversold readings – creates uncertainty but remains secondary to the established bearish volume and candlestick patterns. Probabilistically, the technical structure suggests a 60–70% likelihood of testing the $113.60–$110 support cluster before stabilization.