RSI Overbought and KDJ Death Cross Triggered in Allied Gold's 15min Chart

According to the 15-minute chart of Allied Gold, the Relative Strength Index (RSI) has reached overbought levels, and the KDJ Death Cross indicator has been triggered at 08/18/2025 12:15. This suggests that the stock price has risen too quickly and exceeds the underlying fundamental support, indicating a shift in momentum towards the downside and a potential further decrease in stock price.

Allied Gold Corporation (TSX: AAUC) has recently experienced significant changes in its stock price momentum, as indicated by key technical indicators. On August 18, 2025, at 12:15 pm, the 15-minute chart of Allied Gold showed the Relative Strength Index (RSI) reaching overbought levels, suggesting that the stock price has risen too quickly and exceeds the underlying fundamental support. Additionally, the KDJ Death Cross indicator was triggered, signaling a shift in momentum towards the downside and a potential further decrease in stock price [2].

The RSI, a momentum oscillator that measures the speed and change of price movements, typically ranges between 0 and 100. Levels above 70 are considered overbought, indicating that the stock price may be overvalued and due for a correction. Allied Gold's RSI level above 70 on August 18, 2025, suggests that the stock has experienced a rapid ascent and may be overvalued [2].

The KDJ Death Cross, a technical indicator that combines the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), signals a trend reversal when the MACD line crosses below the signal line and the RSI falls below the 50-level. This pattern indicates a potential downward trend in the stock price, as observed in Allied Gold's 15-minute chart on August 18, 2025 [2].

Investors should closely monitor Allied Gold's performance and consider the potential impact of these technical signals on the stock price. While the company has been driven by operational resilience and strategic capital allocation, the recent technical indicators suggest that investors should approach the stock with caution.

Allied Gold recently reported its second quarter 2025 results, producing 91,017 gold ounces and reporting sales of US$251.98 million, alongside updated production guidance for the upcoming quarters. Despite year-on-year sales growth, the company reported a net loss for both the second quarter and first half of the year, highlighting increased costs or operational factors impacting profitability. The shift to a net loss despite higher sales puts a spotlight on margins and cost control, which remain the biggest immediate risk despite the company’s positive outlook for higher output in the coming quarters [3].

The recent production guidance update is highly relevant here, as the company has outlined expectations for a substantial uptick in gold output, especially in Q4 2025. This anticipated ramp-up is meant to drive revenue growth and represents a critical short-term catalyst; however, the quarter’s net loss highlights that seamless execution is essential for Allied Gold to benefit from rising production volumes. But while output is forecast to surge, investors should also watch for potential operational challenges that could impact profitability.

Allied Gold's outlook anticipates $1.9 billion in revenue and $616.2 million in earnings by 2028. This is based on a projected annual revenue growth rate of 28.3% and an earnings increase of $711 million from current earnings of -$94.8 million [3].

References:
[1] https://simplywall.st/stocks/ca/materials/tsx-aauc/allied-gold-shares/news/allied-gold-tsxaauc-balances-rising-sales-and-lossesis-its-g
[2] https://www.ainvest.com/news/allied-gold-15min-chart-triggers-kdj-death-cross-bearish-marubozu-pattern-2508/
[3] https://simplywall.st/stocks/ca/materials/tsx-aauc/allied-gold-shares/news/is-allied-golds-tsxaauc-rising-sales-yet-net-loss-a-sign-of