Anglogold Ashanti Slumps 4.06% As Bearish Signals Converge Near Key Support

Anglogold Ashanti (AU) concluded the most recent session with a 4.06% decline, closing at $66.60 after trading between $66.59 and $69.92. This analysis evaluates the stock’s technical posture using the specified framework.
Candlestick Theory
The latest session formed a long red candle, closing near its low after rejecting prices above $69.91, signaling strong selling pressure. This pattern follows a small-bodied green candle on 2025-09-23, creating a bearish engulfing formation near the $70 psychological resistance. Key support emerges at $64.36 (2025-09-19 low), while resistance is established at $69.92 (recent high) and $70. A breach below $64.36 may target the $61.31–$62.19 consolidation zone from early September.
Moving Average Theory
The 50-day moving average (MA) near $62.50, 100-day MA at $54.20, and 200-day MA at $46.80 maintain a bullish alignment (50 > 100 > 200), confirming the broader uptrend. However, the current price ($66.60) is testing the 50-day MA after a sharp pullback. Failure to hold this level may signal short-term trend weakness, potentially triggering a deeper correction toward the 100-day MA.
MACD & KDJ Indicators
The MACD histogram has shifted negative, with the signal line crossing below the MACD line, suggesting waning bullish momentum. Concurrently, the KDJ oscillator shows the %K line (32) crossing below %D (45) from overbought territory (>80) two sessions prior. This convergence of bearish signals indicates near-term downside risk, though oversold rebounds may materialize if KDJ dips below 30.
Bollinger Bands
Volatility expanded during the September rally, with the price peaking near the upper band ($70.50). The latest close at $66.60 approaches the lower band ($65.20), while the bands narrow moderately—indicating reduced volatility. A close below the lower band could signal an oversold bounce, whereas consolidation within the bands may precede a directional move.
Volume-Price Relationship
Volume surged to 5.26 million shares during the 4.98% rally on 2025-09-19, validating bullish conviction. Conversely, the 4.06% decline on 2025-09-24 occurred on below-average volume (2.38 million vs. 3.47 million prior), suggesting limited capitulation. This divergence implies the sell-off may lack sustainability, though confirmation requires volume-supported recovery.
Relative Strength Index (RSI)
The 14-day RSI (51) has retreated from overbought levels (75 on 2025-09-22) but remains above oversold territory. While moderating from extremes reduces immediate reversal risks, the speed of the decline warns that RSI could breach 50—a level historically coinciding with pullbacks to $60–$62 support. Traders should monitor for oversold signals (<30) to gauge exhaustion.
Fibonacci Retracement
Applying Fibonacci levels to the rally from $40.16 (2025-05-12 low) to $69.92 (2025-09-24 high), key retracement supports are $62.90 (23.6%), $58.55 (38.2%), and $55.04 (50%). The current price sits above the 23.6% level. A sustained break below $62.90 may accelerate losses toward $58.55, where the 38.2% retracement aligns with the 100-day MA, creating a high-probability reversal zone.
Confluence and Divergence
Confluence exists in the bearish MACD/KDJ crossover and the rejection near $70 resistance, reinforcing near-term downside bias. Divergence appears between price and volume—significant down days lack proportional volume escalation—potentially limiting downside momentum. The 50-day MA and 23.6% Fibonacci level ($62.50–$62.90) form critical support; breaching this zone would align multiple indicators (moving averages, Fibonacci, and RSI momentum) toward deeper correction scenarios.