Kinross Gold (KGC) Falls 5.02% as Bearish Engulfing Pattern and Death Cross Trigger Extended Downtrend

Candlestick Theory
Kinross Gold (KGC) recently closed at $28.21, marking a 5.02% decline, which forms a bearish engulfing pattern as the

body extends below prior consolidation levels. Key support levels emerge at $27.49 (previous 50-day low) and $26.46 (a prior intraday low), while resistance is clustered near $29.70 (December 26 high). The breakdown below $28.21 suggests a potential continuation of bearish momentum, with a confluence of downward bias from both candlestick structure and price action.

Moving Average Theory
The 50-day moving average (DMA) currently sits above the 200-DMA, indicating a bearish crossover (death cross) in recent weeks. The 100-DMA at $28.50 acts as a dynamic resistance, with price failing to reclaim this level after multiple attempts. Short-term momentum (50-DMA) is decisively below the long-term trend (200-DMA), reinforcing a downtrend. However, the 200-DMA at $27.80 may offer a temporary floor if volatility stabilizes.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the line crossing below the signal line, confirming bearish momentum. The KDJ oscillator (stochastic RSI) shows the %K line at 15 and %D at 25, suggesting oversold conditions, but a bearish divergence exists as prices continue to fall despite the indicator’s oversold reading. This may indicate a deeper pullback rather than a reversal, though confirmation is pending.
Bollinger Bands
Volatility has expanded, with the recent close near the lower Bollinger Band ($27.49), a classic oversold signal. The bands’ width has widened from a prior contraction in mid-December, suggesting renewed volatility. However, a break below the lower band may trigger a test of the 200-DMA as a secondary support, while a rebound could see price retesting the middle band ($28.25) as resistance.
Volume-Price Relationship
The recent 5.02% drop coincided with elevated volume (9.1 million shares), validating the bearish move. However, volume has been mixed in prior sessions, with the December 19–22 rally seeing higher volume but failed follow-through. This suggests short-term selling pressure is credible, but sustainability depends on whether volume remains elevated during further declines.
Relative Strength Index (RSI)
The 14-period RSI stands at 28, entering oversold territory. While this may hint at near-term exhaustion, the indicator has remained in oversold conditions for several weeks, a sign of a strong downtrend. A rebound above 30 would require confirmation via a bullish reversal pattern, but current momentum suggests the RSI may stay depressed until a structural shift occurs.
Fibonacci Retracement
Applying Fibonacci levels from the December 19 high ($28.875) to the December 29 low ($27.525), key retracement levels at 38.2% ($28.15), 50% ($28.20), and 61.8% ($28.25) align with recent price action. The failure to hold above the 50% level ($28.20) reinforces bearish bias, with the next target at the 78.6% retracement ($27.60) if the downtrend persists.
Conclusions and Confluence
Multiple indicators concur on a bearish outlook: bearish engulfing candlestick, death cross in moving averages, oversold RSI without reversal confirmation, and Fibonacci support breakdown. Divergences in KDJ and MACD suggest deeper selling pressure rather than a reversal. Traders should monitor the 200-DMA ($27.80) as a critical support level, with volume dynamics and Bollinger Band positioning offering probabilistic clues on trend sustainability.