AU finds buyers again around 19.40
AngloGold Ashanti Limited (AU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AU finished the week 1.99% higher at 19.46 after edging lower $0.04 (-0.21%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.23 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AU as at Feb 14, 2020):
Friday's trading range has been $0.58 (2.94%), that's slightly below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AU.
Prices are trading close to the key technical support level at 19.18 (S1). After spiking up to 19.98 during the day, AngloGold Ashanti found resistance at the 20-day moving average at 19.89. The last time this happened on January 27th, AU lost -5.45% on the following trading day. After having been unable to move lower than 19.36 in the prior session, the market found buyers again around the same price level today at 19.40.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 18.77 where further sell stops could get triggered. As prices are trading close to February's high at 20.17, upside momentum might speed up should the share mark new highs for the month. Trading close to December's low at 18.63 we could see further downside momentum if potential sell stops at the level get activated.
Among the seven 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 401 times, AU closed lower 58.85% 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 51.62% with an average market move of -0.03%.