AU unable to break through key resistance level
AngloGold Ashanti Limited (AU) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
AU finished Tuesday at 13.01 edging lower $0.07 (-0.54%), underperforming the S&P 500 (0.05%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AU as at Apr 16, 2019):
Tuesday's trading range has been $0.34 (2.63%), that's slightly below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AU.
Unable to break through the key technical resistance level at 13.02 (R1), the stock closed below it after spiking up to 13.21 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on April 9th, AU lost -3.03% on the following trading day.
AngloGold Ashanti shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 12.67 where further sell stops could get triggered. Further selling might move prices lower should the market test March's close-by low at 12.36.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for AngloGold Ashanti. Out of 404 times, AU closed lower 58.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.72% with an average market move of -0.23%.