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Writer's pictureLester Davids

Traders, Here's How You Could Approach Anglogold Ashanti - Thursday, 04 July 2024

What You Need To Know:


  1. In the short term, the share has entered an 'Overbought' regime, which makes the reward-to-risk on the buy/long side, less appealing vs previous lower levels.

  2. It's trading at overhead resistance. While we have to 'trade what we see', the following is a possible scenario: the share becomes stronger and attempts to clear the overhead resistance, however, fails to hold these levels, while the candle structure reflects a slowdown of bullish momentum.

  3. An overshoot to the upside, followed by failure to follow through could offer an opportunity to sell/short, with the 8-day EMA as a target.

As of yesterday's close, the price action reading was as follows:



Note: ANG is seeing strong upside follow-through from the reading via the Tactical Trading Guide on 10 June (end of day) which look for a small rebound following the sell-off. The price has since rebound from R418 to a high of R482. The time-stamped reading is shown below.



As per the previous note, I was looking for print into the 21-week (yellow line) as support. This was just below R420, which unfolded followed by a rebound.


Lester Davids

Analyst: Unum Capital


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