AU closes lower for the 2nd day in a row
AngloGold Ashanti Limited (AU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AU finished Wednesday at 29.41 losing $0.47 (-1.57%), significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 29.66, AngloGold Ashanti confirmed its breakout through the previous session low after trading up to $0.33 below it intraday.
Daily Candlestick Chart (AU as at Sep 16, 2020):
Wednesday's trading range has been $0.97 (3.21%), that's below the last trading month's daily average range of $1.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AU.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 29.00 (S1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 30.60 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 28.66 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for AngloGold Ashanti. Out of 701 times, AU closed lower 51.21% 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 50.36% with an average market move of 0.26%.