AngloGold Ashanti Plunges 5.4% As Technicals Signal Deepening Bearish Momentum

Anglogold Ashanti (AU) closed at $43.85 in its latest session, down 5.41% amid a two-day 5.60% decline, as bearish momentum intensified with the stock retreating from its recent $50.84 high. The following technical analysis synthesizes multiple frameworks to evaluate this precious metal equity.
Candlestick Theory
The recent sessions reveal a decisive bearish continuation pattern, characterized by two successive long red candles breaking below the $46.40 support level. The June 24 candle (-3.93%) formed a bearish engulfing structure around $48.30, foreshadowing distribution. Immediate resistance now solidifies near $45.50–$46.00 (prior reaction zone), while critical support rests at $43.44 (latest low), with a breach potentially accelerating selling toward the $42.50 psychological level.
Moving Average Theory
Moving averages signal deteriorating short-term dynamics despite a residual long-term uptrend. The 50-day SMA (approximated near $44.80) crossed below the 100-day SMA (~$43.00) during the current sell-off, flashing a near-term bearish signal. Though the 200-day SMA (~$38.50) maintains an upward slope, the current close below the 50-day and 100-day SMAs implies weakening momentum. A sustained sub-$43.00 close would reinforce bearish control, whereas reclaiming $44.80 could stabilize sentiment.
MACD & KDJ Indicators
MACD lines remain entrenched below the zero line with a widening histogram, signaling persistent bearish momentum. However, KDJ shows an oversold condition – with the K-line near 15 and D-line near 25 – suggesting internal exhaustion. This creates a notable divergence: MACD’s bearish trajectory contrasts with KDJ’s oversold signal, implying heightened potential for a technical rebound, though confirmation requires stochastic crossovers and MACD compression.
Bollinger Bands
Volatility expanded sharply during the decline, with bands widening from 4% to 7% over five sessions as prices pierced the lower band repeatedly. The proximity to the lower band at $42.80 combined with expansion historically signals potential consolidation or counter-trend bounce. However, a sustained sub-$43.44 close would indicate band walk-down continuation. Traders should monitor for bandwidth contraction as a volatility reset precursor.
Volume-Price Relationship
Distribution days dominated the sell-off, with down-day volume consistently exceeding 30-day averages. The latest session’s volume (6.06M shares) surged 98% above the prior session, validating bearish conviction. Absent accumulation signals (e.g., high-volume green candles), this volume profile sustains downside pressure. An advance would require confirmation via climactic selling or increasing volume on rebound attempts.
Relative Strength Index (RSI)
The 14-day RSI collapsed to approximately 28, entering oversold territory for the first time since January. While this reflects acute selling pressure, historical precedents caution that RSI can remain oversold during strong trends for 5–7 sessions. A bullish divergence (higher low in RSI against lower price low) would strengthen reversal prospects, but current readings primarily suggest caution against aggressive shorting.
Fibonacci Retracement
Applying Fibonacci to the primary trend from the $40.16 May 12 trough to the $50.84 June 13 peak, the sell-off retraced 78.6% of gains – breaching the 61.8% ($44.25) level decisively. The 78.6% threshold aligns precisely at $42.45, coinciding with February 2025 resistance-turned-support and the 100-day SMA. This triple-confluence zone offers critical technical significance for potential trend resumption or breakdown.
Confluence and Divergence Observations
Confluence materializes at $42.45–$42.50, where Fibonacci, horizontal price structure, and the 100-day SMA converge, potentially offering robust support. Conversely, a stark bearish divergence exists between MACD/price momentum and oversold KDJ/RSI readings, hinting at latent rebound energy. Traders should monitor the RSI 30 level and $42.50 support break for directional signals – a breach could extend declines toward $40.16, while stabilization may trigger short-covering toward $46 resistance.