AngloGold Ashanti Jumps 22% In 3 Days On Bullish Technicals

AngloGold Ashanti (AU) concluded its most recent trading session with a 6.19% gain, marking the third consecutive day of advances and bringing its three-day cumulative increase to 22.08%. This surge reflects intensified bullish momentum, with the stock closing at $56.46 after testing a daily high of $56.99 on elevated volume of 4.64 million shares.
Candlestick Theory
The recent three-day candlestick formation exhibits a "Three White Soldiers" pattern, signaling robust bullish conviction. Each session’s close progressively exceeded the prior day’s high, confirming upward momentum. Notable resistance is established at $56.99 (August 5 high), while immediate support resides near $53.25 (August 5 low) and $50.20–$50.35 (August 4 low and a convergence with the 38.2% Fibonacci level). The extended upper wick on August 5 suggests profit-taking near current highs, warranting caution.
Moving Average Theory
A bullish alignment persists across key moving averages, with the 50-day MA (approximating $46.40), 100-day MA ($44.20), and 200-day MA ($38.00) all trending upward. The current price ($56.46) trades comfortably above all three, confirming a long-term uptrend. The 50-day MA recently crossed above the 100-day MA, reinforcing intermediate bullishness. Sustained trade above the 50-day MA may signal continuation, while a breach below $50.35 could trigger a test of the 100-day MA.
MACD & KDJ Indicators
The MACD histogram shows bullish expansion, with the MACD line (12-day EMA) accelerating above the signal line (9-day EMA), reflecting strengthening momentum. Meanwhile, the KDJ oscillator signals overbought conditions, with the %K line (recently calculated at 94.8) and %D line both above 80. While this divergence between MACD momentum and KDJ’s overbought reading does not immediately invalidate the uptrend, it heightens reversal risk, particularly if %K reverses sharply.
Bollinger Bands
Volatility expansion is evident as price breaches the upper Bollinger Band (approximately $55.72), calculated using a 20-day SMA baseline of $48.72 and a 2-standard-deviation width. This deviation signals an overextended short-term rally. Historically, such breakouts either precede sustained uptrends or sharp consolidations; a reversion toward the $48.72 baseline could occur if volume support wanes. Bandwidth contraction preceding this rally’s initiation adds technical credibility to the breakout.
Volume-Price Relationship
Volume surged to 4.64 million shares on August 5—the highest in five weeks—validating the bullish breakout. The three-day rally saw progressively higher closes accompanied by above-average volume, confirming accumulation. However, the August 4 advance occurred on relatively lower volume (3.50 million), introducing minor divergence. Sustainability hinges on volume persistence; deterioration below 3.50 million amid consolidation may signal exhaustion.
Relative Strength Index (RSI)
The 14-day RSI reads 71.6, entering overbought territory (>70) for the first time in three months. While this aligns with the KDJ’s warning, RSI’s upward slope suggests ongoing momentum strength. Crucially, RSI has not yet formed a bearish divergence against price. Traders should monitor for RSI reversal below 70, which may precede pullbacks. Historically, AU has extended gains briefly after entering overbought zones, but mean-reversion toward 50–60 often follows.
Fibonacci Retracement
Applying Fibonacci levels to the major swing from the May 12 low of $39.61 to the August 5 high of $56.99 reveals critical thresholds. The 23.6% retracement ($52.89) and 38.2% level ($50.35) offer immediate supports, with the latter converging with the August 4 gap-up low ($50.20). A deeper retracement to the 61.8% level ($46.25) aligns with the July 31 low, forming a high-confidence support zone. Upside targets include the 127.2% extension near $60.00. Current price action holds above $52.89, maintaining short-term bullishness.
Confluence and Divergence Summary
Confluence reinforces $50.20–$50.35 as a pivotal support, merging the 38.2% Fibonacci level, prior gap territory, and the psychological $50 threshold. Resistance at $56.99 gains technical significance from the upper Bollinger Band violation. Divergence appears in the KDJ’s overbought signal against the MACD’s bullish momentum. The RSI and Bollinger Band overextension offer additional cautionary signals, while volume and moving averages validate the uptrend. Probable near-term outcomes include either consolidation within $53.25–$56.99 or a shallow pullback to test $52.89–$50.35 before resuming upward trajectory.